Income tax refund
I am in a 21-month bankruptcy due to excess income. I filed in July of last year.
My trustee filed my post-bankruptcy return. Today, I received a an income tax refund cheque from CRA.
Do I have to turn the entirety of it over to my trustee, or do I get to keep it, just claiming the income and paying the estate according to the directive amounts?
Posted from: British Columbia
I am sorry, but as of the amendments in 2008, your post bankruptcy tax refund is supposed to be paid to your trustee for the benefit of your creditors. If CRA mailed it to you then you need to contact your trustee as your trustee will expect you to hand it over.
Frankly, I disagree with this aspect of the law, but I have been told in no uncertain terms that it is not flexible.