May 2nd, 2009 by Questions
If one goes bankrupt owing back income tax, what happens to that debt ?
Posted from: Ontario
One Response to “back taxes”
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May 04, 2009 at 6:26 am, A licensed trustee said:
Income tax debts are discharged (eliminated) when you file for bankrutpcy just like credit crads, bank loans and other unsecured debts. If the only debts you have when you file for bankruptcy are to the government then you should be prepared to appear in Court to explain how/why you ran up a tax debt, but at the end of the day, tax debts are treated like any other unsecured debt.