Bankruptcy & Retroactive Disability Pension Payment
February 24th, 2006 by Questions
I am planning on declaring bankruptcy within the next week or so. I haven’t been able to work for the past 4 years due to health reasons. I applied for CPP disability benefits in July 2005 while in the midst of divorce.
I was initially declined and have applied for a reconsideration because the decision sited was based on false information. I do not expect to hear the next decision for up to another 6 months and even then, my case may have to go to tribunal. It could be anywhere from 3 – 9 months (and longer if it goes to tribunal)I figure before I finally receive a final decision based on whether I am accepted after the reconsideration for a disability pension.
My question is this in regards to bankruptcy:
If I find out I do in fact qualify for disability benefits during my discharge period and I receive a retroactive amount, what happens with it since it is a “pension” amount? Would I have to give over the entire amount to the trustee? My only source of income is spousal support. What if I receive a retroactive amount after the 9 month discharge period?
I appreciate your quick reply! Thank you.