child tax benefit, province of Ontario
My husband had to file bankrupt after making a very reasonable proposal. He was a franchisee and they cut him off after 4 years of a 10 year franchise. He owes the franchiser. Personally he has no debts. I as his wife am not involved at all. I do not work outside the home. He is allowed 3982 of monthly income. We have 4 children, total 6 in our family. The CTB comes in my name and direct deposited to one of the children’s bank accounts. I then distribute it between the 4 and send it to my financial advisor at RBC. He deposits the money into each of their education account. I do not spend the money at all. The childrens bank accounts are also in another province (BC). I transfer the funds electronically every month. Do I have to give them the CTB? Why is it considered family income? Is there protection for me? My SIN is on the forms and I do not want to furnish that info to them at all. What are my rights, if any?
In terms of the CTB, you do not have to hand over the CTB payment to the trustee, but you are required by law to disclose it for the superintendent surplus calculation. According to the legislation, when determining the cost of a bankruptcy it is “it is necessary to establish the earnings and expenses of both the bankrupt and the bankrupt’s family unit. The bankrupt must disclose the earnings and expenses of each member of the family unit.†The legislation goes on to stipulate that “the bankrupt’s family unit includes, in addition to the bankrupt, any persons who reside in the same household and who benefit from either the expenses incurred or income earned by the bankrupt, or who contribute to such expenses or earnings. A person who does not reside in the same household shall be considered as a member of the family unit if the person benefits from, or participates in, the bankrupt’s income or expenses.â€
This doesn’t mean you will loose the CTB, it simply uses it when determining whether or not surplus payments have to be made to the trustee.