personal bankruptcy, incorporated company, and taxes

March 26th, 2009 by Questions

I am from Windsor -On
I am truck driver and i was open incorporation and paying my self like subcontractor
I no have the truck, i drive someone truck, and he pay to me like subcontractor
I lost the job in February and cant fine the job because economy down.
I file my incorporation tax and i owe to
Revenue Canada 3700 dollars after everything
Like subcontractor i earn only 12 thousand from incorporation.
I have to many debt personally like mortgage credit cards and more.
I no have job and i mast file personal bankrupt.
I have 2 kids and wife
My question is if i file personal bankruptcy
and i am director of incorporation whats happened if incorporation doesn`t pay the many to Revenue Canada.
Does the revenue Canada collect many from my personally or sue me.
Its this danger to discharge my personal debt and after discharge can they sue me or something.I no have asset on incorporation and nothing owe to nobody
only tax to RCA.
THANKS

Posted from: Ontario

Questions

One Response to “personal bankruptcy, incorporated company, and taxes”


March 27, 2009 at 9:07 am, Barton Goth - Goth & Company Inc. -Trustee in Bankruptcy said:

As a director of a limited company you are personally responsible for any GST owing by the company and any payroll remittances that they should have made.

As a result you may want to consider closing the company prior to bankruptcy and then filing a bankruptcy. As then you will be cleared from your personal debt and any liabilities from the company that as director fall to you. The remainder of any debt in the corporation that the director is not personally liable for will simply die with the company.

The alternative is that you can retain the company, the company and indirectly you will still be responsible for these debts to CRA.

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