Bankruptcy – Tax Debt

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;
  • HST;
  • 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.

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