personal bankruptcy and business debt
My fiance is about to declare personal bankruptcy. Is he responsible for the GST and Employer source dedcutions that haven’t been paid through the company he was 50% owner of or can these be included in his bankruptcy? The business also obtained a government loan which he personally guaranteed and a second charge was put on his house. The house has been repossessed. Is this debt included in his bankruptcy?
Both GST and Employer source deductions are types of debts that owners / directors of companies are personally liable for, as are any debts that your fiancé would have personally guaranteed.
However, as long as these debts are not the result of fraudulent misrepresentation they will typically be cleared by a personal bankruptcy.