disability and bankruptcy

December 3rd, 2009 by Questions

I have applied for canada pension disability. The application was started in March 2009. I signed a paper at the time that if there was a retroactive payout it will go to the insurance company currently paying my disabilty. I have decided that I will have to claim bankruptcy and have started paper work with a trustee. My question is if the disabilty gets approved and there is a child care portion that could be retroactive for my daughter, does the trustee have to be notified of this lump sum or can I give it to my daughter as promised?

Posted from: Ontario


One Response to “disability and bankruptcy”

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

You would have to notify your trustee. The key distinction is that this payout is not your daughters money. It is money that is given to you to offset some of the child care costs you are burdened with. As a result you must notify your trustee.

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