FILL OUT THE FORM BELOW AND RECEIVE A NO-OBLIGATION CONSULTATION

"*" indicates required fields

This field is for validation purposes and should be left unchanged.

Name*

Phone Number*

Email*

This field is hidden when viewing the form

What's the best time to contact you?*

Location*

What city do you live in?*

Total Unsecured Debt*

*Unsecured debt includes credit cards, lines of credit, bank overdrafts, payday loans, and unsecured personal loans (excluding student loans). It does not include mortgages and car loans.

This field is hidden when viewing the form

Source

How can we help you?

If you have unsecured debt of under $10,000 and live in the Province of Ontario filing bankruptcy may not be the best option for you. We suggest you contact the Office of the Superintendent of Bankruptcy at 416-973-6441 to discuss your options, or you can visit their website here.

Agreement*

I understand that Bankruptcy-Canada.ca does not provide debt relief services directly and agree to securely share this information with a local Licensed Insolvency Trustee (LIT) for a free, confidential consultation.

Select Trustee By Province

Income tax

Can you please tell me how bankruptcy affects income tax? Does all the credit that we use get declared as income since it will be forgiven in bankruptcy anyways?

Share this post:

X (Twitter) Facebook Pinterest LinkedIn Email

2 Responses to “Income tax”

Barton Goth, GCO Inc. Bankruptcy Trustees said...

You need to be prepared to loose any tax refunds for the year of bankruptcy nd any years previous. The same applies to GST Tax Credit.

A licensed trustee said...

Interesting point – I hope the tax department doesn’t get any ideas…

For individuals that file either an assignment in bankruptcy or a proposal the debts are simply dealt with by the procedure. The debts are not added to the individuals taxable income. (If they were it wouldn’t matter as income taxes are debts that are eliminated by a bankruptcy or proposal).