Payment Of Bankruptcy Fees And Tax Returns

2010-11-01

As a general observation I would want to see the fee agreement you entered into with your trustee before commenting on any specific matter so the following comments are general in nature only. All tax refunds relating to the year in which a person filed bankruptcy (or for any prior years) are considered to be an asset of the bankruptcy estate and remain in the bankruptcy regardless of any fee agreement. So the Trustee cannot return any tax refunds for those years regardless of what your fee agreement said. GST that has gone into a bankruptcy estate will be refunded if the amount of funds in the estate from other sources (the tax refund in this case) exceeds a certain benchmark amount (roughly $1,600 depending on the type of filing and the court fees if relevant). When the trustee does his final statement of receipts and disbursements any excess GST would be returned to you at that time. If that is not clear, please do not hesitate to call me if you require any further information or wish to discuss the above. Ian Schofield MNP Regina 306-790-7904

Latest Blog Posts

2025-09-04

Will Bankruptcy Erase All Of My Debt?

Mary Plahouras Rob Shier

Bankruptcy

The intention of Canadian bankruptcy law is to provide honest and overextended debtors the opportunity for a financial fresh start.

Read More

2025-09-02

How to budget when you’re living paycheque to paycheque

Caryl Newbery-Mitchell

Lifestyle Debt Debt Solutions

You already know the many benefits of skilled money management. The fact you’re reading this blog post says at least that much. Your challenge, like for most households, is how to navigate the seemingly infinite demands on your frustratingly finite income.

Read More

2025-09-02

MNP’s Atlantic Canadian guide to affordable fun

Lifestyle Debt

Have fun on a budget with our guide to affordable activities in Atlantic Canada.

Read More

Consultation icon