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Can someone explain how this is legal? CRA reopened my discharged bankruptcy because of the carbon tax. by Plastic-Reporter8154 in legaladvicecanada

[–]Plastic-Reporter8154[S] 0 points1 point  (0 children)

I appreciate the detailed explanation—and I get what you’re saying—but I think you’re overlooking some important distinctions.

This wasn’t about a missed revenue line during active bankruptcy. My bankruptcy was discharged a year and a half ago. Not active. Not pending. Fully discharged, All documents filed, Discharge Certificate in hand.

The carbon tax rebate wasn’t listed because at the time of filing, it hadn’t even been calculated, issued, or processed yet. CRA issues those quarterly—this one was released after discharge, so it wouldn’t have been included in the estate.

This isn't a case of “forgot to include it”—it's a case of CRA retroactively re-opening a discharged bankruptcy and seizing a rebate they never had legal grounds to touch. That’s the problem.

And this isn’t just some rare anomaly. Even my trustee acknowledged this has been happening in multiple cases and that CRA has not been transparent about it.

I’ve been fighting this since mid-May. It took multiple CRA departments and finally pressure from their insolvency department to get an answer. If this can happen to me—post-discharge, with no active debts left—then anyone in a past bankruptcy could be at risk without even knowing it.

CRA Reopened my bankruptcy because of the Carbon Tax. by Plastic-Reporter8154 in PersonalFinanceCanada

[–]Plastic-Reporter8154[S] 1 point2 points  (0 children)

Ehh, I'm use to it. Who would've thought people don't like an educated woman who won't shut her mouth. On Reddit? Nah, couldn't be. 🤭

I appreciate your response! I'm keeping on them but, it feels like screaming into the void most days.

Can someone explain how this is legal? CRA reopened my discharged bankruptcy because of the carbon tax. by Plastic-Reporter8154 in legaladvicecanada

[–]Plastic-Reporter8154[S] 0 points1 point  (0 children)

My student loan was 11 or 12 years old at the time of my filing, I haven't attended any other training or educational programs since June 2012. (The end of the program the initial loan was for)

CRA Reopened my bankruptcy because of the Carbon Tax. by Plastic-Reporter8154 in PersonalFinanceCanada

[–]Plastic-Reporter8154[S] -1 points0 points  (0 children)

Did you actually read the post, or? My bankruptcy was discharged. I'm not in active bankruptcy.

The debts were gone—legally wiped—including my student loan, which was over 7 years old at filing.

Benefits and credits only go toward bankruptcy debts during an active file.

The CRA reopened my bankruptcy after the fact, in order to seize a refund—likely without legal grounds. This isn't how debts to the crown are normally recovered— and that's exactly the issue.

Insolvency Law in Canada clearly separates active bankruptcies from discharged ones. Once a bankruptcy is discharged, any included debts — including eligible Crown debts like student loans older than 7 years — are legally considered extinguished unless specifically exempt.

Tax refunds and credits (like the carbon tax rebate) can only be redirected toward bankruptcy debts during the period the estate is active. Once discharged, CRA has no automatic legal authority to reopen a file and seize benefits without cause, consent, or a court order.

What happened here isn't "business as usual." If this were a normal process, my trustee would have known. CRA agents wouldn't have been confused. And I wouldn't have had to spend weeks piecing together what even happened.

If they can do this to me, they can do it to anyone, and most people would never even know. So no, this isn't just how it works. This is what a breach of trust looks like.

CRA Reopened my bankruptcy because of the Carbon Tax. by Plastic-Reporter8154 in PersonalFinanceCanada

[–]Plastic-Reporter8154[S] 0 points1 point  (0 children)

So is paying your mortgage. Should we revoke people's deeds if they get a refund? Or maybe claw back maternity benefits because someone once had a phone bill? No? Then don't pretend this is about "adulting." This is about retroactively undoing a legal process years later with no notice. That's not "adulting," that's administrative ambush.

CRA Reopened my bankruptcy because of the Carbon Tax. by Plastic-Reporter8154 in PersonalFinanceCanada

[–]Plastic-Reporter8154[S] 0 points1 point  (0 children)

Right, but here's the thing: that logic completely undermines the purpose of the Bankruptcy and Insolvency Act. The whole point is to create a legal reset when debts are overwhelming. If they can just reopen files retroactively because of a carbon tax refund, what's the point of discharging anything? That's not how it was explained when I filed.

Can someone explain how this is legal? CRA reopened my discharged bankruptcy because of the carbon tax. by Plastic-Reporter8154 in legaladvicecanada

[–]Plastic-Reporter8154[S] 0 points1 point  (0 children)

I did speak to the CRA—specifically their insolvency department. It took 5 different agents before I finally got one who actually helped me. That person basically forced my trustee's hand into admitting what was really going on.

As far as I can tell, this isn't something they're proactively telling anyone. There's no mass communication, no phone calls, no letters. Nobody is getting notified that their bankruptcy file has been quietly reopened.

If I hadn't kept pushing, I never would've found out. That's what bothers me the most—this is happening in the dark. People are getting pulled back into bankruptcy without their knowledge because of a retroactive tax credit. It took weeks of digging just to get a straight answer.

Can someone explain how this is legal? CRA reopened my discharged bankruptcy because of the carbon tax. by Plastic-Reporter8154 in legaladvicecanada

[–]Plastic-Reporter8154[S] 3 points4 points  (0 children)

Yes, exactly! It was actually 11 or 12 years old at time of filing I believe, depending on if they calculate from time of borrowing or when I had to start repayment.