Bankruptcy Question & Answer Forum - Canada

Author:		BK
Date:		October 14, 2005
Question:		My sister is in the middle of a bankruptcy and this month she did not receive her GST Credit cheque. Is that garnished during Bankruptcy? I tried to look it up online but the only think I came up with was from Toronto. It had a brief statement on a page that said that you're GST Credit would be kept but that in some instances you could apply to get it back. Is this true here?
From:		Bruce, Alger & Associates Inc.
Date:		October 14, 2005
Answer:		Good question. I am going to add it to our website as permanent information. Under the rules in the Bankruptcy and Insolvency Act, trustees are entitled to keep GST cheques which would normally go to the bankrupt to pay up to approximately the first $1700 of fees and costs for the bankruptcy. The actual upper limit of the amount which can be retained will differ depending on the actual disbursements paid for court fees and the like. If and when the trustee has obtained enough funding from other amounts collected during the bankruptcy, the GST will be refunded. Bruce Alger phone: (403) 296-2970 balger@alger.ca