CRA debt
Hi, I will filing for Bankruptcy shortly to deal with other debt. I have filed my 2007 tax return and have learned that I owe. I have no ability to pay this amount. Can I include this CRA debt in my Bankruptcy still even though the debt is so new and not exactly outstanding?
Yes, under Canadian Bankruptcy laws tax debt is cleared by the filing of a bankruptcy or a proposal as long as it relates to a period prior to the date the bankruptcy or proposal is filed.
The best thing to do is when you go into meet with a local trustee bring all your tax information with you so he can see what needs to be done and get a good idea of approximately how much will be owing to CRA.