Will I receive my Canada Child Benefit (CCB) if I file for bankruptcy?

The Canada Child Benefit (CCB) is a non‑taxable amount paid monthly to help eligible families with the cost of raising children under 18 years of age.

If you file for bankruptcy, it will not affect your Canada Child Benefit payments. If you are eligible, you will still receive it as part of your income.

Is Canada Child Benefit classed as income in bankruptcy?

As of 2020, guidance from the Office of the Superintendent of Bankruptcy (OSB) states that the Canada Child Benefit (CCB) shouldn’t be included as an asset or income during bankruptcy, as per subsection 122.61(4) of the Income Tax Act.

Your income determines the amount you will pay toward your bankruptcy. The good news is that CCB payments are not classed as income, which may result in you paying less.

Source: The OSB: Canada Child Benefit

Surplus income meaning

The government sets income thresholds through the Office of the Superintendent of Bankruptcy. These numbers aim to ensure that you can live comfortably during your bankruptcy and make sure bankruptcy is a fair process.

This monthly income threshold is based on how many people live in the household.

When you make more money than the government threshold for your family size, you must make surplus income payments to your creditors during your bankruptcy.

Calculating surplus income involves finding out the total household income.

Canada Childcare Benefit (CCB), Canada Recovery Benefit (CRB) and Canada Emergency Response Benefit (CERB) are not included when calculating surplus income.

Tax, deductions and non-discretionary expenses are subtracted from each family member’s income to give the available monthly income for the entire household.

Then this amount is compared against the government threshold to determine if you have surplus income.

See also: Surplus income in bankruptcy


The good news is that you still receive your Canada child benefit (CCB) if you file for bankruptcy, and payments aren’t classed as income during your bankruptcy.

If you are considering filing for bankruptcy and have questions about Canada child benefit (CCB) or any other concerns, let us connect you with a Licensed Insolvency Trustee in your area today.

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