NSW Will Tax Debt be Extinguished for Discharged Bankrupt?

Australia's #1 for Law
Join 150,000 Australians every month. Ask a question, respond to a question and better understand the law today!
FREE - Join Now

peter jones

Member
24 August 2016
1
0
1
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?
 

Victoria S

Well-Known Member
9 April 2014
518
59
2,289
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.