Question: My bankruptcy was discharged July 27, 2006. And my trustee filed my tax returns for that year. For 2007 I filed with H&R Block. A few weeks later I received my assesment, but no refund (which I was owed). They say they are holding it because even though I have been discharged, my trustee has not been discharged yet. Do they have a right to hold my refund because of a bankruptcy that was discharged the year before?
Answer: No, if you were discharged in 2006, you are entitled to your tax refund for 2007. Unfortunately some trustees are less efficient than others, and it takes them a long time to process the paperwork necessary to get their discharge.
You should contact your trustee and ask them to contact Canada Revenue Agency and give them permission to send you your tax refund. You may need to contact your trustee more than once, but that’s the only way CRA will send you your refund.