Child Disability Benefit
Hi my name is Theresa and my question is this. My children both have a ADHD and I was told by my paediatrician that they should be allowed a child disability benefit. Which would be a God send because my son needs extra help and could definitely benefit from Sylvan or something similar. The problem is that we are currently in the bankruptcy process and my trustee said she wasn`t sure how it would work. Would all of this money be lost to the creditors if it were granted to the children. Thank You for your time.
Posted from: Nova Scotia
If you plan on refiling for periods that relate to the date BEFORE you filed for bankruptcy then any refunds created will be sent to your trustee for the benefit of your creditors. So, if you go back and refile 2004, 2005, 2006 and 2007 those refunds, if any, will be automatically sent to your trustee.
On a go forward basis, that is from the day after you file for bankruptcy the refunds will only be sent to your trustee if you signed them over to your trustee. Call your trustee and ask them if you assigned your “post bankruptcy tax refund” to your estate. If you did then your trustee will get that refund too.
If your children are entitled to this benefit then you should claim it for whatever years they were eligible. I realize the money will go to your crediotrs, but it establishes an eligibility history with the tax people and will make future claims easier to process… If you tell your trustee they will likely do all of the work for you.