Return Of Gst After Bankruptcy

2010-07-20

Completing a bankruptcy file is actually a two step process - first the individual receives their discharge then the trustee has to go through a process to get discharged as well.

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The major part of the trustee getting its discharge involves filing a final statement of Receipts and Disbursements with the Office of the Superintendent of Bankruptcy (the OSB) and then notifying the creditors. As you have noted in your question GST payments are sent to the Trustee during the course of a bankruptcy. The OSB allows the trustee to retain the GST payments to cover a certain minimum fee level but requires the Trustee to return those to the debtor once those minimum fee levels are reached. Normally, these are returned to the debtor as part of the filing of the final statement of Receipts and Disbursements.

Sometimes it can be many months before the Trustee can get its discharge if, for example, the trustee is waiting for a tax return to be assessed or there is a dispute with some creditor over the amount of their claim. Since I obviously don't know the specifics of your file I can only suggest that you contact your trustee and ask them if they would be prepared to return the GST prior to their discharge.

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