• bankruptcy income tax
    income taxes,  Personal Bankruptcy in Toronto

    Income taxes and the “honest but unfortunate debtor”

    A bankrupt debtor who was ordered by the Court to pay $35,000 to the Canada Revenue Agency, which was the major creditor in her bankruptcy because of unpaid income taxes. At issue in this court case was whether the bankrupt in question was “an honest but unfortunate debtor”. Diewold (Re), 2018 SKQB 149 The Debtor—a 64 year old pensioner with no available surplus income—owes the Government of Canada a debt of $263,817.16 for personal income tax. The income tax debt makes up over 99% of the unsecured proven claims in the bankruptcy. The Canada Revenue Agency (“CRA”) opposed the Debtor’s bankruptcy discharge. The Trustee reported that the Debtor has assets…