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

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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.

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Income tax Debt

My son is unemployed, has no assets (lives with us) and owes $20,000 to Canada Rev Agency and $5000 to an ex-employer.

If he files bankruptcy will the tax debt disappear forever? Or will they recover from his future tax refunds or credits?

Can they still garnishee wages and take funds out of his bank accounts?

Thanks.

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One Response to “Income tax Debt”

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

When you file for bankruptcy in Canada, the majority of unsecured debt (including tax debt) will be cleared and it would be illegal for any additional monies to be collected by the tax department for repayment of a debt cleared during a bankruptcy.

However, be aware that if your son qualifies for any GST cheques or tax refunds for the year of bankruptcy, these will be paid into the trustee.

For more information on this you are best to contact a licensed trustee in your area and they will be able to advise you of all the specifics relating to this type of situation.