October 9th, 2010 by Questions
My common law wife has been claiming single on her income tax for the last two years, unknown to me. We were doing our taxes at different places and I was claiming common-law. She was claiming the kids but put herself as single. She is now having to owe Revenue Canada 12500 dollars. 5000 of which are income tax refunds she had to return. 6500 are actually overpayment`s of baby bonus. She is also repaying to collections a 1500 OSAP debt that was never included in her first bankruptcey 5 years ago. Her income is 800$ a month, part time. She is unable to pay back both the collections and the CRA. Her total debt is 14500$. SHe appealed the decision and lost. Can she have a second bankruptcy? Can she include the collections? Can all of the amount owing to CRA be included or is it different rule for different types of CRA monies owed? Thanks
Posted from: Ontario
One Response to “Martin Stewart”
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October 10, 2010 at 9:22 am, A licensed trustee said:
Your spouse has a problem. By misrepresenting her livng situation on her tax returns and child benefit application she may have excluded these debts from any kind of bankruptcy protection. Likely CRA would write off the tax debt, but reduce any future CTB she is entitled to until the debt has beenb recovered.
She has the right to file bankruptcy a second time, but the second time the procedure is much longer and (ususally) much more expensive. Use the links to find a trustee in your area and have your spouse give them a call.
This problem can be solved, but because your spouse lied about he situation, the solution will be more complicated.