Directors Liability for source deductions before bankruptcy

March 7th, 2006 by Questions

Our company went under, and I declared personal bankruptcy due to personal guarantees on the business.

I failed to remit source deductions, and as a director before the personal bankruptcy (that also ended my directorship)., this made me personaly liable.

The personal bankrupcy ended my obligation to CRA, as a director liability, according to some canadian bankruptcy websites.

But CRA clains im still responsible.

It’s only for a small amount ($1000), however I don’t believe CRA rules can supercede the bankruptcy act (the old one before Nov 2005)

Can anybody give me a straight answer on this ?


One Response to “Directors Liability for source deductions before bankruptcy”

, Barton Goth, GCO Inc. Bankruptcy Trustees said:

As long as the default occurred prior to you filing for personal bankruptcy you should be cleared from this amount as the portion you are liable for becomes an unsecured debt in your personal name. You should contact your Trustee for more details and make sure he sends a response to CRA’s request.

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