Tag Archives: tax debts

How Are Tax Refunds Affected In A Bankruptcy?

15 Jul 2019

One asset that is affected by a personal bankruptcy is income tax refunds. The law requires that Canada Revenue Agency (CRA) send the trustee income tax refunds for specific years so that the refund can be included in the proceeds available to the creditors. Let’s consider three different periods of time:…

(110) commentsRead more

Will An Automatic Stay Of Proceedings Stop Canada Revenue Agency?

12 Sep 2018

Filing a consumer proposal or bankruptcy creates an automatic “stay of proceedings” under federal law. That means that your creditors, the people you owe money to, cannot start or continue legal action to collect the debt. No other consumer debt relief option can make that claim. A common question that…

Should I File Bankruptcy for Tax Debts?

03 Aug 2018

One common misconception about bankruptcy is that tax debts, whether owed to Canada Revenue Agency (CRA) or provincially, do not go away after a bankruptcy. But this could not be further from the truth! Only a few types of debts survive a bankruptcy. All tax debts, whether for personal income…

(39) commentsRead more

More Tax Considerations Of A Bankruptcy In Canada

20 Apr 2015

Most people get into financial trouble at some point in their lives. Many are able to work their way through their difficulties and recover. Some cannot, and they often end up filing for personal bankruptcy. The good news for these people is that bankruptcy deals with tax debts, as well…

Secured Debts Vs Unsecured Debts in Bankruptcy in Canada

14 Jul 2014

treatment of secured and unsecured debt in bankruptcy in Canada

What is the difference between secured debts and unsecured debts when you declare bankruptcy in Canada? Bankruptcy is a chance to start over, and while it does eliminate most debts, it does not deal with them all. One of the biggest distinctions when filing bankruptcy is whether or not your debt is…

(10) commentsRead more

Afraid To File Tax Returns Because of Tax Debts?

21 Apr 2014

tax debt tax returns Canada Revenue Agency

Income taxes are a fact of life. You know this. Everyone knows this. And yet, there are still people that, for many reasons, don’t file and pay their taxes every year. The Canada Revenue Agency (CRA – formerly known as Revenue Canada) is what we call an involuntary creditor. CRA…

(2) commentsRead more

What Debts Are Eliminated By Filing Bankruptcy

12 Mar 2014

One of the most common questions we receive is about what debts can be covered in a bankruptcy or a consumer proposal. Most unsecured debts may be included, but what exactly is an unsecured debt? These are the ones that do not have collateral or items held in security against…

Do I Have To File My Tax Returns Before Filing Bankruptcy?

28 Aug 2013

Most trustees in bankruptcy, myself included, will tell you that you should file all of your outstanding tax returns before filing bankruptcy in Canada – but do you really have to? The filing of income tax returns is required under the Income Tax Act. There is actually no requirement under…

(4) commentsRead more

Personal bankruptcy and property taxes. Are they discharged?

26 Aug 2013

Property taxes are one of the least understood obligations that home owners have – people recognize they have to be paid, but most people don’t realize the special rights that property taxes have been granted under Canadian law. Let’s start with the fundamentals – property taxes represent a charge on…

(6) commentsRead more

Myth #4: All My Debts Are Discharged In Bankruptcy

11 Mar 2013

Bankruptcy is not an easy way out. People who file bankruptcy are not walking away from their debts with no consequences. In addition, despite popular belief, not all debts can be discharged by claiming bankruptcy. Bankruptcy and debt can be complicated. Myth: Bankruptcy erases all of your debts. Truth: Personal…