bankruptcy and canada revenue agency and OAS

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low income senior

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bankruptcy and canada revenue agency and OAS
« on: October 25, 2013, 02:23:30 PM »
These answers may not work for everyone but after much digging, many letters and phone calls I find out a few things that helped me and may help you.  I am 71 and declared bankruptcy in BC in March of this year. It is very difficult because the rules and answers for the bankrupt person are not only unclear but are very hard to find.  However, after much work, I did find out several things that worked for me:  (1) open a new bank account; (2) check the internet to find a bankruptcy trustee who does not take your GST credits from you while also taking your bankruptcy trustee payments from you as some do and some do not (still, they have to return the GST credits to you, plus interest, once you have finished paying the trustees their money).  Some trustees are very aggressive and did not know all the rules then either; (3) if you do owe Canada Revenue Agency, you may not have to pay them back BUT they will simply take your income tax refund as payment anyway - at least for the year previous to the bankruptcy (not sure yet about after bankruptcy if you still owe them, say less than $160, as I think the balance is supposed to be legally extinguished by then but won't know this answer until next year); (4) if you owe OAS any recovery tax money, they will completely ignore your bankruptcy and continue automatically taking the money from your OAS pension money every month until they are paid in full BUT you can write a letter explaining your substantially reduced finances and file a Form T1213(OAS) if you have a substantially lower net income in the current year and you may get some back (I was very lucky and finally got $615.00 back sometime in June) and (3) it takes 16 weeks for GIS to let you know if you qualify for GIS or not AND then they base it on your income of 2 years ago (which is ridiculous) and not the current year unless your financial circumstances have changed substantially and only for certain reasons.  You have 90 days after their notice to you to present your case if your financial circumstances have changed substantially-check the GIS info on this part (still fighting this one so not sure of absolute answer on this yet) and also check their GIS tax table to see if the amount they propose is correct or not.  Good luck to all.
« Last Edit: November 05, 2013, 02:56:15 PM by low income senior »

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Nevergiveup

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Re: bankruptcy and canada revenue agency and OAS
« Reply #1 on: November 02, 2013, 11:17:55 PM »
thank you for sharing, I am sure these info will be helpful for some people who are considering bankruptcy. It would be nice to share it with the support group ''considering bankruptcy'' I am positive they will like to read that, I hope I had this info b4bfiling bankruptcy, I did not  know anything about it.

Thanks again.

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low income senior

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Re: bankruptcy and canada revenue agency and OAS
« Reply #2 on: November 04, 2013, 02:31:36 PM »
Thank you for your reply and I hope it helped you somewhat.  I did not know there were different groups like "considering bankruptcy" until you wrote me so thanks for that tip.  A lot of what I have experienced and learned has happened only during the actual bankruptcy which has been often too late to help me in some cases.  It would be nice if there existed a manual or publication with lots of details and full explanations of what to do just before or just at the beginning of bankruptcy especially since there is so very little real help for bankrupt persons that are true and reliable answers.  Also, if they were in one place it would certainly help with the situations that arise.  I forgot to mention one thing, I telephoned the Superintendent of Bankruptcy for one question and while I was waiting I was made aware of a completely different answer to something else, which is: - I was told that the Superintendent of Bankruptcy would help bankrupt persons with their payments to the bankruptcy trustee but that this has to be put in place early on and not when you are already paying the bankruptcy trustee on your own.  I was 7 months into bankruptcy before I discovered this answer so not sure about how this works exactly but do phone their office yourself before you do anything else and see what they tell you and do it early on, not later on.
low income senior
« Last Edit: November 04, 2013, 04:56:02 PM by low income senior »

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Nevergiveup

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Re: bankruptcy and canada revenue agency and OAS
« Reply #3 on: November 05, 2013, 02:31:43 PM »
Thank you for sharing, this is very nice of you.
I have been discharged 41 months ago and I am in the process of re-establish credit now,  I feel so bad for not having all this knowledge about bankruptcy but past is  past, I have to keep moving. you ll get  your discharge soon?  all the best. Thanks again.

 

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