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Alger & Associates personal bankruptcy services are
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Alberta bankruptcy Q&A forum

Question:

 

Thank you for answering. :O) If personal income tax debt is under $200,000 but there has been a director liabilty imposed for another $400,000 or so, how is that handled... is the director liability amount treated as a separate unsecured amount? as per: "Your Bankruptcy Trustee must legally oppose your discharge from bankruptcy if you have $200,000 or more of personal income tax debt and your personal income tax debt comprises 75% or more of your total unsecured debts. You will be required to appear in bankruptcy court to determine the outcome of your bankruptcy discharge." .... Also not sure of the trustee being forced to oppose.. why is that? Thank you so much for taking the time to answer these questions... stressful times.


From:

 

Grant Thornton Limited

Date:

 

Feb 27, 2016

Answer:

 

Hello, Personal income tax and director liability are two different type of debts. If an individual owes $200,000 in personal income tax and it makes up 75% of the total debt load then there is an automatic Court application for your discharge. In your particular circumstance, you may not have an automatic Court application as your personal taxes are less then $200,000 and may be less than 75% of your debts outstanding. Although there isn't an automatic Court application, Canada Revenue Agency as a creditor may object to your discharge. This is determined on a case by case situation from Justice Canada. Perhaps you can contact our office for a no charge consultation to discuss your options.

Susan Methuen
T 403-310-8888
susan.methuen@ca.gt.com

 

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