Question Asked...
I have incorporated a business for a year now, thinking that it would grow. I spent a lot of money on tools and supplies. Now I don`t have any left to pay my taxes. It`s about four thousand dollars ($4000.00). If I file for bankruptcy will I lose my credit and such?
Posted from: Alberta
If you file for bankruptcy there is always an impact on your credit and while it is not lost for good, you will have to spend a little time and energy working on credit repair.
In terms of whether or not I would recommend even considering bankruptcy is going to depend significantly on the total amount of your unsecured debt. If you only owe $4,000 then the filing of a bankruptcy simply wouldn’t make sense, but if it is only one small part of your list of creditors than we may have to discuss that.
If you have significantly more owing than this debt to CRA then I would suggest you contact a local trustee, but if this is the only thing you are struggling with you are better to contact CRA directly and make payment arrangements to pay this debt over time.