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funds from CRA after bankruptcy

Individual goes bankrupt NOT spouse, 2004, received tax refunds for 5 and 6. spouse approved for Disability tax credit 07 going back 5 years including year husband went bankrupt. Transfer of credit to husband he now gets nice amount of monies, can trustee keep part of it.

One Response to “funds from CRA after bankruptcy”

A licensed trustee said...

CRA should automatically apportion the refunds that relate to the PRE-bankruptcy period and send them to the person”s trustee (even if the bankruptcy file is closed).

The logic is fairly straightforward. If some one came along with a debt that related to the period before you filed for bankruptcy you”d want it included in the bankruptcy. The trade off is any tax refunds you may become entitled to (no mater how long after your bankruptcy) for te period before you filed for bankruptcy will be sent to your trustee.