Child Tax Benefit Credits & Bankruptcy

February 21st, 2014 by Questions

My wife was with me abroad for my schooling. And we both were considered as factual resident of Canada and were filing our income tax every single year while abroad. But all of a sudden the CRA decided that we are considered as non resident as of 2010 and asking my wife to repay the Child Tax Benefit based 2010 & 2011. She can’t afford to pay this as we both just come back and still looking for job. Now if she files bankruptcy will her evaluation (before proceeding) involves me as well or it is only her liability?

Posted from: Nova Scotia

Questions

One Response to “Child Tax Benefit Credits & Bankruptcy”


, Jillian Taylor-Mancusi, Trustee | B.A. | C.I.R.P said:

If she owes a debt to CRA it can be discharged in bankruptcy assuming no fraud was involved. Generally speaking Child Tax Benefit credits are payable to the mother and repaid, as in this case, by the mother, and should not create a liability for you.

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