All Tax Debt Is Erased By Bankruptcy
We’re always surprised by how few people know that tax debt is discharged by bankruptcy. This includes:
- Personal Income Tax;
- Source Deductions; and
- Director’s Liabilities.
High Personal Income Tax Debtors
If your personal income tax debt exceeds $200,000 and represents more than 75% of your total debt, then you are considered a high personal income tax debtor and your Trustee will be required to oppose your discharge. At the resulting discharge hearing a Judge will consider your the and appear before a judge. The Judge will consider your circumstances and either grant a suspended, adjourned, or conditional order of discharge.