Bankrupcy and Disability CPP
Recently a family memeber suffered a major stroke and was place in Disibility Bankrupcy and all of his income sources were listed as required, employer based Long Term Disability. Since the filing, we have received notice that approval for Disibility CPP was granted. Will the DCPP be included as an increase in monthly income? What happens now? We live in Ontario.
Yes, the DCPP will be included, but you may find the LTD will be reduced or stopped. In addition, if their is a retro-active compenent to the DCPP be careful – the insurance company may require a portion of the LTD to be repaid. You should keep your trustee up to date on all of this too – that way there won’t be any unpleasant surprises for you later.