Does bankruptcy clear you from tax debt?
April 3rd, 2009 by Questions
A friend who has serious credit card problems. She is self employed but has been living `beyond her means` for some time thanks to credit cards. Now I discover, the taxman is after her, and for good reason. Does bankruptcy erase back taxes too?
Posted from: Quebec
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April 04, 2009 at 9:43 am, Barton Goth - Goth & Company Inc. -Trustee in Bankruptcy said:
Yes, taxes are covered by a bankruptcy. Although the process may change a little depending on how large the tax debt in question is. If the tax debt makes up a substantial majority of the debt then it is very common for Canada Revenue Agency to oppose the bankruptcy discharge . For a better idea if this is a risk or not I would suggest your friend contact a local trustee.