Bankruptcy Question & Answer Forum - Canada

Author:		Shirley-ann
Date:		May 3, 2005
Question:		My mother-in-law was discharged from bankruptcy a few months ago - second time, she went to an accountant to help her file her taxes for 2004. My mother-in-law also has been caring for her daugher who is a dependent adult with disabilities, her accountant has advised her she could claim for her as a dependent, apparently she was not aware of this before. They will be asking for reconsideration of the previous years taxes dating back to when her daughter was considered handicapped. My mother-in-law has been advised that if successful she may be entitled to over 13,000.00 more or less. My question is does this go to the trustee? Will she see any of this amount? What does she need to do?
From:		Ann Clarke, Alger & Associates Inc.
Date:		May 3, 2005
Answer:		A recent decision of the Court confirmed that any refunds relating to tax years up to and including the year of bankruptcy, are property of the bankruptcy estate and must be used to pay creditors via the Trustee. I'd recommend that your mother-in-law talk to her Trustee. Ann Clarke phone: (403) 296-2972 aclarke@alger.ca