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Podcast: DebtMatters Podcast
Episode: 72 - What Happens to Tax Refunds in a Bankruptcy or Consumer Proposal
Description: Despite their differences, Consumer Proposals and Bankruptcy both guarantee protection from creditors. But both debt relief options are unique in how they deal with tax refunds. In a Bankruptcy, your Trustee will prepare and file your returns and any refunds will be distributed to your creditors. In a Consumer Proposal, you are required to file your own returns and must be up to date with past filings. If you do not owe the CRA money and are entitled to a tax refund, you make keep it. Licensed Insolvency Trustee, Derek Chase, walks us through the different scenarios a...