Question: If I go bankrupt will I lose my child tax credit for my kids?
Answer: If you go bankrupt in Ontario, the trustee will NOT take your child tax credit. However, each month that you are bankrupt you are required to report your income to the trustee, and if your income goes above a certain limit (based on the size of your family), you will be required to pay a portion of that surplus income into your bankruptcy estate. Please contact an Ontario bankruptcy trustee to do a calculation for you of the cost of bankruptcy based on your income and family size.