Retro pay

November 19th, 2008 by Questions

Hi , i have filed for bankruptcy a month ago. I have just leaned that I may recieve retoactive pay from my previous job in 2007. I will be respnsible to pay the income tax as none will be deducted. I know I have to report this, but will all of this have to go back to my estate even though it was money from working in 2007?

Posted from: Nova Scotia


One Response to “Retro pay”

, A licensed trustee said:

It will be up to your trustee to decide is this retro pay is “income” and therefore subject to the surplus rules (partial seizure) or if it is a windfall and subject to 100% seizure. The law is felxible enough that trustees treat this kind of payment both ways – you’ll need to call your trustee and ask them how they will treat it…

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