2024-09-25
What happens if I don’t fulfill my duties during a Bankruptcy?
Bankruptcy
If you’re going through a personal Bankruptcy, one of your main goals is to obtain your discharge — that is, to have your debts cleared so you can start fresh.
Questions on Income Tax Debt and Filing for Bankruptcy a Second Time
Yes it is possible to file an assignment in bankruptcy a second time and yes it would serve to extinguish or discharge your income tax debt.
If you have $200,000 or more of income tax debt and this represents more than 75% of the total unsecured proven claims, a court application for your discharge would be held upon the expiration of 24 months (if you don't have surplus income) or 36 months (if you do have surplus income).
If your tax debt is less than $200,000 you would remain eligible for an automatic discharge to be granted by the Trustee, however, the same time periods would apply i.e. 24 versus 26 months depending on whether or not you have surplus income.
Bradley Milne
CIRP, LIT
Senior Vice President
Servicing: Brandon, Killarney, Portage la Prairie, Neepawa, Virden, Souris, Deloraine
Latest Blog Posts
2023-07-25
Everything you need to know about Bankruptcy What is it and how does it work
Bankruptcy
Bankruptcy can be an intimidating proposition, but it doesn’t have to be scary or complicated. Living with financial stress has many negative impacts, on your wallet, your mental health, and on your ability to plan for the future.
2020-05-11
Is Bankruptcy the answer to your tax debt
Bankruptcy
Few things strike fear in a person’s heart like tax debt. There’s a long-held belief that you can’t fight the government, so most people resign to not even bother.
