Are my CPP and OAS considered income ?
November 28th, 2014 by Questions
if CRA garnishes my CPP or OAS and I declare bankruptcy, is that monthly cheque considered to be income for me even though I don’t actually receive it?
Posted from: Ontario
One Response to “Are my CPP and OAS considered income ?”
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November 28, 2014 at 9:54 am, Doug Stuive, CA | Trustee | CIRP said:
In general most debts owing to the Canada Revenue Agency are included when you file for bankruptcy. This means that if you were to file a bankruptcy, the garnishment on your CPP or OAS will stop and you will start receiving this income again. This income would then form part of the monthly income that you would declare to your Trustee. .
There are some garnishments that bankruptcy cannot stop, including child support arrears or fraudulent overpayments. If that is what your garnishment is for then only the net amount you receive after the garnishment has been applied will count as income for the purposes of the bankruptcy
If you are being garnished for income tax arrears or other government debts I would highly recommend that you consult with a Trustee to see if a bankruptcy will stop the garnishment and get rid of the debt owing.