can you plan a bankrupcy

November 20th, 2009 by Questions

if you have no choice but to claim because you owe the cra over 200.000 can you sell the house.and go on trips to clear bank assets,then plan to remove other assets from the business and have someone take the other assets after the claim has been filed with the trustee. if this is done how long do you wait before claiming bankruptcy. can this be done a year or longer before you claim bankruptcy.

Posted from: Ontario


One Response to “can you plan a bankrupcy”

, Barton Goth - Goth & Company Inc. -Trustee in Bankruptcy said:

Planning a bankruptcy is a very bad idea. There are several aspects of the Bankruptcy and Insolvency Act that will provide significant penalties for being involved in any of the types of behavior you have mentioned.

As well, the court always has the final say, so if you actions are questionable and the creditor opposes your discharge the court will get an oppertunity to weigh in on what you have done, and they are not kind where efforts have been made to defeat or hinder the rights of the creditors.

You will find that based on your level of tax debt a bankruptcy will be difficult enough, but if you are involved in a number of questionable activities prior to the filing of a bankruptcy you can expect that the court will likely be severe and require you to pay back a fairly significant percentage of your tax debt as a penalty for this.

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