January 6th, 2016 by Questions
Is CPP owed from being self-employed exempt from bankruptcy?
January 07, 2016 at 11:47 am, Desmond West-Chow, CIRP, Trustee said:
If you have operated your business as a sole proprietorship or partnership, where personal earnings are not viewed separately as business earnings, then CPP is cleared in a bankruptcy.
If you have incorporated your company and paid yourself as an employee, the portion that must be paid by the company is still a liability of the company. This changes if the company is closed down, as the portion for CPP falls onto the director through director’s liability (which is cleared through personal bankruptcy of the director).
This can sometimes be a bit complex given the various ways that people operate self-employment, so it may be best to clarify with a local trustee.
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