Canada Bankruptcy - Late Fees

Bankruptcy Canada Questions & Answers

Author:		Anonymous
Date:		January 7, 2009
Question:		A friend owes taxes and penalties to Revenue Canada. Is it possible to claim bankruptcy to avoid paying back taxes and penalties? Will bankruptcy reduce these amounts or waive penalties?
From:		Karen Alger & Associates Inc. - Alberta Bankruptcy Trustee
Date:		March 29, 2010
Answer:		Canada Revenue Agency (Revenue Canada) are an unsecured creditor in bankruptcies however, filing bankruptcy is a 3 way Street. Your frient must give full disclosure of your assets, income and debts. This means that the debt can be foregiven - penalties and all but if they have assets that are not exempt and income over the government standard, the Trustee must review the whole picture. The other key component to a successful bankruptcy is paying Revenue Canada instalment payments if the individual continues to be self-employed. He/she will not be released unless they prove that they have paid their current(after bankruptcy) taxes. Karen Rideout phone: (403) 296-2973 Alberta Bankruptcy