Quote:
Originally Posted by taxbuster
My experience has generally been different...it doesn't matter that it's only tax debt, but they'll hold the bankrupt in the state of bankruptcy for somewhwat longer. Don't know if that's a regular thing or not, but the ones I've dealt with seem to be that way.
Thanks to all and to those who PMd.
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Holding someone in bankruptcy longer is a huge difference. I'm just telling you (as a lawyer who deals in bankruptcy) that there is a special category of "high tax debt bankrupt".
The trustees I referred can explain, but here's the gist:
High-tax debtors — whose tax arrears exceed $200,000 (including principal, penalties and interest) and represent 75 percent or more of their proven debts — face a slightly more complicated process. These individuals will not qualify for an automatic discharge from their Bankruptcy and must attend a special hearing.
At this hearing, the courts have a wide range of powers, including the ability to:
Grant an absolute order of discharge
Impose a conditional order of discharge (e.g. repay a portion of the outstanding taxes, attend additional financial counselling sessions, etc.)
Suspend the discharge for specified timeframe
Suspend the discharge and attach concurrent or consecutive conditions
Adjourn the hearing to a future date
Refuse the discharge altogether
https://mnpdebt.ca/en/resources/mnp-...-your-tax-debt