Getting over tax debt stress
When tax season comes around, the heavy burden of a tax debt can be overwhelming. However, it is possible to declare bankruptcy or make a proposal to get rid of it. The details of the process will be tailored to your personal or business situation.
In general, tax debt included in a bankruptcy or proposal is dischargeable: it will not survive the process. In any case, it is necessary to make sure you file any overdue tax returns. Filing overdue returns will help calculate your actual debt and ensure that you are entitled to all tax credits and benefits (some of which are non-seizable, cannot be offset, and will be paid to you despite the bankruptcy).
It is important to consult a licensed insolvency trustee because some additional conditions for discharge may apply if you have a very significant tax debt (over $200,000).
Furthermore, if you have committed tax fraud, the fraudulent portion of your debt will not be discharged.
A licensed insolvency trustee at Beaudin Groupe Conseil can assess whether bankruptcy or a consumer proposal is the best solution for you. They can explain how the options work, taking into account your financial situation, the amounts owed to the tax authorities, and other debts you may have.