I'm declaring bankruptcy because of taxes. Is this allowed?
The Canada Revenue Agency may fight your bankruptcy discharge if it believes that you are declaring bankruptcy primarily as a way to avoid paying taxes. On the other hand, if the bankruptcy judge sees that you are genuinely insolvent and are unable to pay your tax debt, the debt may still be discharged. In this situation, it is important to be frank with your trustee, who may then choose to recommend a tax lawyer who specializes in situations like yours.
