August 10th, 2006 by Questions
my father owed 31000 dollars in back taxes, he declared bankruptcy went through all the hoops like a good boy. now he has been dis charged for 1 year I believe, he has recieved tax returns, gst and so on. now canada revenue is telling him that he owes them 21000 in back taxes because that was never resolved with his bankruptcy claim, my question is can the government do that to him? and if yes tyhen why wait so long to tell him, they put a lein on his house but never sent him any forms telling him of this. thank you for your time
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August 11, 2006 at 8:36 am, A licensed trustee said:
You should probably contact the trustee that handled your father’s bankruptcy and ask to review the claims submitted by the government for his taxes. If the government arranged for a lien on your father’s house BEFORE he filed for bankruptcy then the debt (up to the value of his equity at the time that he filed) would not have been discharged (eliminated) by his bankruptcy. If the lien was registered after he filed then it has not value and there will be steps your father can take to correct the situation.
Unfortunately, the government is not required to notify a person when the government registers a lien on title for failure to pay income taxes. The only time you find out is when/if the property is sold or refinanced. It is always an unpleasant surprise…