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

"*" indicates required fields

URL

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

Reading the post that was posted about the income tax helped me realize I`m not clear on how that works. I`ve already been to see a Trustee and am in the process of applying for the BAP. Would you please explain briefly what happens with the insolvents income tax for the year they are in bankruptcy. Thanks!

Posted from: Ontario

Share this post:

X (Twitter) Facebook Pinterest LinkedIn Email

One Response to “Income Tax”

Barton Goth – Goth & Company Inc. -Trustee in Bankruptcy said...

What happens is that your date of bankruptcy is deemed to be a year end. Meaning that two returns must be filed for the year of bankruptcy. One from January 1 to the date of bankruptcy (pre-bankruptcy return) and the other from the date of bankruptcy to Dec. 31 (post-bankruptcy return).

Any money owing from the pre-bankruptcy return and any return prior to that is cleared by the bankruptcy. Any money owing on the post bankruptcy return the bankrupt is responsible for as it happened after the date of bankruptcy.

To confuse everything, any refunds for the year of bankruptcy or any prior years are lost as part of the bankruptcy.