Bankruptcy and Senior Benefits
Hi there,
I work with Seniors in southern Alberta; helping them with CPP, OAS and Alberta Senior Benefits applications. Today a man who just turned 65 came in and explained he has started the process of claiming bankruptcy, however one of his creditors is CRA. He owes over $30,000.
Being that this debt is owing and OAS and CPP departments need to review his income tax statements (which he hasn’t completed “in a few years”), is applying even possible?
If so, would applying for Bankruptcy before benefits be the best course of action? Any advice you could lend would be appreciated.
Thank you,
Erin Vogt, BSW
Lethbridge Senior Citizen Organization
1 Answer
If he wants to obtain his CPP and OAS benefits, filing bankruptcy isn’t the issue that is prohibiting Service Canada from processing his application. It’s the fact that he hasn’t filed his income tax returns.
Advise your client to file his income tax returns ASAP so that he can get his government retirement benefits.
The timing of when he files bankruptcy is irrelevant.
Your Answer
1 Answer
If he wants to obtain his CPP and OAS benefits, filing bankruptcy isn’t the issue that is prohibiting Service Canada from processing his application. It’s the fact that he hasn’t filed his income tax returns.
Advise your client to file his income tax returns ASAP so that he can get his government retirement benefits.
The timing of when he files bankruptcy is irrelevant.