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What happens to tax debt?

September 6, 2017

A lot of people believe that tax and other government debt gets special treatment, that is simply not true – government debt is dischargeable in insolvency proceedings (proposals and bankruptcies) just the same as other debts are.  There may things to consider such as “director’s liabilities” if you are the director of a bankrupt corporation, in which case you may be personally liable for the corporation’s tax debts.  But a personal proposal or bankruptcy may resolve that problem.