Ginsberg, Gingras and associates, trustees in bankruptcy, held their annual retreat in Ottawa on October 20th, 21st & 22nd, 2011.

The bankruptcy trustees and administrators from all offices met to discuss the latest developments in matters of indebtedness, bankruptcy and consumer proposal. Amongst the conference speakers, the office of the superintendent in bankruptcy presented their new debtor's compliance reference program.

What is a personal income tax debt, income tax bankruptcy?

Personal income tax debt

A "personal income tax debt" is an amount payable, within the meaning of subsection 223(1) of the Income Tax Act, without reference to paragraphs (b) to (c), by an individual and the amount payable by an individual under any provincial legislation that imposes a tax similar in nature to the income tax imposed on individuals under the Income Tax Act, including the amount of interest, penalties, or fines imposed under this act or the provincial legislation. It does not include an amount related to an obligation of a corporation for which an individual may be responsible as a director or former director of this corporation.

« Process regarding the sale by a trustee – consequences for the buyer – sale to related persons »

In the context of a bankruptcy, the trustee has the obligation to liquidate the bankrupt's assets for the benefit of the mass of unsecured creditors.

The trustee has also the power to act or intervene on behalf of the secured creditor under certain circumstances and conditions prescribed by the Bankruptcy and Insolvency Act (the BIA).