21 Jun Income Tax Debts and Assets
Did you know? Two areas in insolvency that are often misunderstood by the public are:
- Whether income tax debts are included in proposals and bankruptcy;
- What assets can be kept in a proposal and bankruptcy;
Income tax debts are included with all the other “unsecured” debt in a Proposal and Bankruptcy.
Assets that have secured loans against them (e.g. house, cars) may also be kept in most circumstances, however, the asset and loan values need to be reviewed with the Trustee* or Administrator.
Note: Consumer Proposals must be filed with an Administrator who is a federally licensed Trustee in Bankruptcy or person appointed by the Superintendent of Bankruptcy.