Is Income Tax Debt Extinguished In A Bankruptcy

2011-06-24

Hello, Yes personal income tax debt is generally extinguished in a bankruptcy.  However, there are instances where Canada Revenue Agency may be owed a substantial amount for GST, income debt, or source deductions and in response they may register a Certificate of Judgement on the title to your home.  If this occurs before a bankruptcy takes place, the Judgment on title remains enforceable and essentially has the same effect as a mortgage i.e. it would survive the bankruptcy and the debt would have to be paid before the Judgment is removed. Brad Milne, CIRP Trustee in Bankruptcy Brandon, Manitoba

Latest Blog Posts

2025-06-30

Who Can File For Bankruptcy

Linda Paul

Bankruptcy

There are several common scenarios which may cause you to wonder whether personal bankruptcy is an appropriate option to get out of debt.

Read More

2025-06-30

The Four Stages of Debt Collection

Debt Solutions

Here are the four stages of debt collection you can expect.

Read More

2025-06-30

How do I respond to creditors?

Caryl Newbery-Mitchell

Credit Counselling

Here are the ABC’s of dealing with creditors and debt collectors.

Read More

Consultation icon