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Revenue Canada Debt

I own a company and owe one creditor $90,000, all of my other creditors I have managed to pay. I also owe Revenue Canada about $20,000 in GST and $4,000 in payroll remittances. I have two questions – Revenue Canada told me I have to pay them no matter what – I was just wondering if this was true, they are getting forceful – have frozen my account.. Also will my company’s name be published in the paper whe I file for bankruptcy?

One Response to “Revenue Canada Debt”

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A licensed trustee said...

It won’t surprise you to hear that often the Canada Revenue Agency’s (CRA)collectors don’t know much about bankruptcy law – it’s not really their department.

There are two sides to your problem – the business and your personal one.

If CRA has frozen your business accounts they are telling you it is time to either pay-up or close-up. In most cases, since the business can’t pay the debts, it is time to close-up. If you bankrupt the business the government debts will transfer from the business to the directors. That is what the CRA collector probably meant when they said the debts won’t go away.

If however, you end up filing personal bankruptcy or a proposal to your creditors, the government debts will be included in your personal plans and they will be dealt with.

Business/personal bankruptcies are too complicated to deal with on a website. You should use the links at the side of the page to contact a trustee in your area to discuss this in person.

Good luck sorting things out.