Alberta Family Tax Credit and Canada Child Tax Benefit
For the month of July I unexpectedly received an Alberta Family Tax Credit for my 4 young children.
Currently, it has been calculated that I do not have any surplus income and I will be discharged in 9 months. However, due to this Alberta Family Tax credit, I am afraid this will be considered surplus income.
Will this tax credit be divided into the 9 months I am in bankruptcy or will they consider this as 1 month’s income? What options do I have so that I can avoid going into 21 months into bankruptcy?
The tax credit will be considered as income.
At the eighth month of the bankruptcy, the trustee will calculate the average monthly income to determine what is owed and when you will be eligible for a discharge.
This means that the tax credit will be divided over the time of your bankruptcy and it will not be considered a 1 month income increase.
The Bankruptcy Calculator on this page can help you see how long your bankruptcy will last and the required payments you will have to make.