Are Trustees legally required to file the POST bankruptcy return

December 15th, 2013 by Questions

No one seems able to give a definitive answer for the following two bankruptcy question. Are Trustees required to file the POST bankruptcy return or not? If not, and the Trustee has made you sign their “Payment Agreement” stating that they are required to do so – in order to keep your income tax refunds isn’t this fraud or misrepresentation or something? In addition, if your debts are discharged in same year as your bankruptcy and they take the refund anyway why would that be right anyway as all debts are legally extinguished? A response would be very much appreciated – thanks!

Posted from: British Columbia


One Response to “Are Trustees legally required to file the POST bankruptcy return”

, A licensed trustee said:

The problem is you are dealing with two different things. When the Bankruptcy Act was changed in 2008, all tax refunds for the year a person files for bankruptcy, both the Pre and Post periods, are paid to the trustee for the benefit of your creditors. That’s the law.

Most trustee will prepare the Post bankruptcy return as part of the administration of the file, but they are not required by law to do so.

All of this should have been explained BEFORE anyone decides to file for bankruptcy.

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