2025-06-25
How to budget for inflation
The cost of daily goods has been rising over the past few years — increasing the price of food, gas, clothing, and many other essential items that Canadians need in their day-to-day lives.
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.
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Options to consider if you can’t pay back your student loans
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What are the pros and cons of a Consumer Proposal?
Bankruptcy Alternatives to Bankruptcy
Let’s review what a Consumer Proposal is, as well as the pros and cons of filing a Proposal, to help you determine if it’s the right solution for your unique situation.
