Tag: About Bankruptcy

What happens to our income tax returns and GST / HST funds?

Any refunds that you may have from previous years will become an estate asset available to all your creditors. The tax return for the year in which you become bankrupt is also an estate asset. This includes the period from January until the date of bankruptcy (pre-bankruptcy return). A second tax return will have to be completed for the period from the date of bankruptcy to December 31 (post-bankruptcy return). Any refund will be assigned to the Trustee for the benefit of the creditors, whether you are discharged or not. GST funds are normally sent to the trustee for the period until the end of the calendar year of the year when you file the bankruptcy. When the trustee is discharged from the bankruptcy all or a portion of the GST will be paid to the debtor as a lump sum, the amount being paid will be directed by the court.

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