I owe a lot of money for unpaid taxes (250k). I think i am going to be filing a bankruptcy. I don’t have any assets but was wondering if because I owe the government can this be dealt with in a bankruptcy? Am I even able to file with this lump sum owing to them? I heard that they would take everything above my basic living expenses for the duration of my bankruptcy. Is this right?
bankruptcy and unpaid income tax
posted by Questions @
1 Expert Comment:
At March 5, 2009 |
8:45 pm
, Barton Goth, Trustee in Bankruptcy Said...
When you owe such a substantial amount to CRA for taxes often a bankruptcy is the only option available. The taxes will be cleared by a bankruptcy, but where you have a substantial majority of your debt that is tax related the court will require you to pay a portion of it back as part of your bankruptcy. What this amount is will be determined by the court and will be done in a manner that is based on your financial position (i.e. ability to pay).
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