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NSW Will Tax Debt be Extinguished for Discharged Bankrupt?

Discussion in 'Debt and Bankruptcy Law Forum' started by peter jones, 24 August 2016.

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  1. peter jones

    peter jones Member

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    I'm a discharged bankrupt and the ATO was 1 of my listed creditors, and at the moment, the ATO hasn't extinguished any of my accounts. They have only written off the debt. Is it true that tax debts are extinguished?
     
  2. Victoria S

    Victoria S Well-Known Member

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    A debt owed to the Australian Tax Office is released on bankruptcy, but the Tax Commissioner has the power to issue a Statutory Garnishee over wages. If the statutory garnishee is issued prior to the date of bankruptcy, it will not be released.
     
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