ODSP conflicts with Bankruptcy

[mysticnight]

Hi all!  I got a call last week that I am approved and am meeting with my worker next week.  Yay.

I am also in the middle of a bankruptcy and it conflicts with ow/odsp.  When I got the double OW payment last December/January, it showed on the bankruptcy as too much monthly income, and brought up an investigation. Now, when I get the arrears, it will show as WAY too much income, make the bankruptcy run an extra two years, and I will have to pay $400/month in fees, which I clearly will not really have.

What can I do in this situation?  I didn't realize all this a year ago when I started.
What can the arrears be spent on, and do I need to show receipts for all of it?

The monthly payments of ODSP may go above that allowed in my bankruptcy.

Does arrears count as income in terms of bankruptcy and/or taxes.

Is there any way not to get lost in this mess? 

Thanks,

Rachel

[jbkeh]

First, social assistance (including arrears) is not "income"; it is protected by law from your creditors. See Ontario Works Act, Sec. 23:

http://www.ontario.ca/laws/statute/97o25a#BK23

and Ontario Disability Support Program Act, Sec 18:

http://www.ontario.ca/laws/statute/97o25b#BK17

Second, the lowest threshold for actual income to have a "surplus" component (if you are a benefit unit of 1) is $2,062, far above any social assistance maximum.

Your retro (arrears) may put you into an over-asset situation, but ODSP will give you six months to resolve things (either by purchasing "exempt" assets, or by spending on "consumables").

Be forthright with you worker - s/he may have further comments.

The way you have described things does not pass the "smell test". Perhaps you should contact the Office of the Superintendent of Bankruptcy Canada:

http://www.ic.gc.ca/eic/site/bsf-osb.nsf/eng/home

[Lorene]

I sympathize with you on that, Rachel. I went thru bankruptcy while on ODSP 7 years ago due to OSAP and credit card debts. I was accepted to get on bankruptcy and I think I had to pay $125 a month for 9 months straight plus 2 credit counselling visits. I am now officially declared debt free. Thank god. And no more harrassing phone calls from credit agencies almost every day and threatening letters in the mail from them. Even Revenue Canada stopped giving me GST and other credits, too. I got them reinstated back when I finished bankruptcy. I couldn't live without any Revenue Canada credits which was why I decided to file bankruptcy. My OSAP debt was over 9 years old. I was waiting for 10 year period when I didn't know they changed the bankruptcy rule down to 7 years.

I don't know how to advise you. It seems $400 per month is very steep.

Lorene

On Saturday, May 16, 2015 at 10:28:25 PM UTC-4, mysticnight wrote:

[Dev Saroop]

On the Your Declaration of Income, Line 150-236  It is considered as Income..

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[jbkeh]

A link to whatever " Your Declaration of Income" to which you refer would be helpful....

[mysticnight]

Congratulations on being debt free, and living again.lol   

I think she said $400 a month, but it may have been $200 in fees.  Sorry if I wasn't clear. My concern is not them taking my ODSP, but that it puts me over the financial limits allowed in bankruptcy of $1000 and something per month. In any case, I am meeting my worker on Friday, and will ask her all these questions, then see the bankruptcy agent afterwards.  So many little details I never would have thought of otherwise.

thanks for your input.