October 26, 2020
It has come to the attention of the Office of the Superintendent of Bankruptcy (OSB) that at least one software vendor was using a version of Form 65, Monthly Income and Expense Statement of the Bankrupt/Debtor and the Family Unit and Information (or Amended Information) Concerning the Financial Situation of the Individual Bankrupt, that incorrectly included a line item for the Canada Child Benefit (CCB) in the income category. The Form was corrected in a recent release of the software.
The OSB understands that this is an inadvertent technical issue that affects all open files. Any issues brought to the OSB’s attention on a particular file will be considered on a case-by-case basis.
The OSB would like to remind Licensed Insolvency Trustees that the CCB is not to be included as property, or income on Form 65, as subsection 122.61(4) of the Income Tax Act dictates that the CCB is not subject to the Bankruptcy and Insolvency Act. For additional information on how to treat the amount related to the CCB, please refer to the OSB Position Paper titled “Canada Child Benefit (formerly Universal Child Care Benefit)” and the OSB Temporary Guidance March 30: COVID-19.