2025-09-12
To be or not to be — a director. That is the question.
Thinking of becoming a company director in Canada? Sure, it’s an impressive title. But it’s also a serious legal responsibility.
Do Income Taxes Owed To CRA Get Written Off In Personal Bankruptcy?
2012-11-29
Yes, they are released in a bankruptcy, or consumer proposal for that matter.
Many people are confused about this issue primarily, I think, because they have read websites relating to bankruptcy proceedings in the USA where income tax debts are generally not released. In Canada all debts that a person owes are released in a bankruptcy with the exception of a very few specifically listed types of debts (alimony and child support, fines and penalties imposed by a court etc.). Income tax (and generally debts due to the government) are not specifically listed and they ARE therefore released.
I should also note that there is no authority under the Income Tax Act for CRA to settle a debt for some lessor amount but we can, and do, settle debts owing to CRA through Consumer Proposals Frequently. Please do not hesitate to call me at 306-790-7904 if you would like further information or wish to discuss.
Latest Blog Posts
2025-09-04
Will Bankruptcy Erase All Of My Debt?
Bankruptcy
The intention of Canadian bankruptcy law is to provide honest and overextended debtors the opportunity for a financial fresh start.
2025-09-02
How to budget when you’re living paycheque to paycheque
Lifestyle Debt Debt Solutions
You already know the many benefits of skilled money management. The fact you’re reading this blog post says at least that much. Your challenge, like for most households, is how to navigate the seemingly infinite demands on your frustratingly finite income.
