What Happens With Income Tax Debt In Bankruptcy

Hello, This is a good question as there is a common misconception that income tax debt is not discharged or "forgiven" in bankruptcy.  Income tax debt is in fact extinguished in bankruptcy. One exception would be if you owe a substantial amount to Revenue Canada for an income tax debt and they have registered a Certificate of Judgment on your property.  If this has occurred, the judgment remains enforceable and essentially has the effect of a mortgage on your property (i.e. the debt would have to be paid before the judgment would be removed). Brad Milne, CIRP Trustee in Bankruptcy Brandon, Manitoba