Are there specific measures to prevent individuals from eliminating their tax debts by filing for bankruptcy?
• Any individual who has more than $200 000 in income tax debt that represents more than 75 percent of his/her total debts, will no longer be entitled to automatic discharge. He/she will need to apply to the Court for discharge and the Court will be empowered to impose conditions on the discharge (e.g. require a partial payment over a specific length of time). • More than 700 individuals who filed for bankruptcy last year had income tax debts above $200 000. Typically, these individuals are self-employed professionals who earn significant income or have good prospects of earning significant income in the near term. Q17. Does the government expect that the number of personal bankruptcies will be reduced by the proposed reform? • The number of insolvencies is tied to many factors, including the economic and personal circumstances, employment and interest rates, and level of indebtedness. • There is no optimal number of bankruptcies in any given year. The key is to ensure that the insolve
Related Questions
- I received a discharge in a Chapter 7 Bankruptcy, but some debts that could not be discharged remain. Can filing a Chapter 13 help me with these debts?
- Are there specific measures to prevent individuals from eliminating their tax debts by filing for bankruptcy?
- Can individuals other than attorneys give legal advice about bankruptcy filing?
