disablity funding and bankruptcy/proposal

April 22nd, 2009 by Questions

We are considering a consumer proposal or bankruptcy. We have a child with a disability. We have recieved through various methods funding to pay for our childs many therapies. The money is held in a seperate bank account for his use. He is a minor and the account is in his mother`s name. Would the trustee take this money away? He also receives some disability amounts from the Government – would this be taken? Would it be income? We got in debt by paying for our child`s care because there is not enough support, so would we loose the tiny bit that we do get? When calculating surplus income would be able to deduct what we pay for therapy for our child?

Posted from: Ontario


One Response to “disablity funding and bankruptcy/proposal”

, Barton Goth - Goth & Company Inc. -Trustee in Bankruptcy said:

Typically these disability amounts are not assets of a minor, they are made out to the parent to help them with the cost of the disabled child. As a result they are considered part of the household income and may be reflected in the cost of a bankruptcy or a proposal depending on what the total household income is, but the money would not directly be taken.

As for the money that is set aside in a separate account, if it is a small amount and it is necessary for the cost of care, then you may not have an issue at all, but the larger the amount the more likely you may loose a portion of that savings. It is best to consult with a local trustee and they will be able to help to advise exactly what you could expect.

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