How to Stop CRA Garnishment After Receiving an RTP Demand Payment Letter

Ever felt the stress of unexpected financial setbacks? How to stop CRA garnishment is a question many Canadians face when dealing with debt issues and a RTP (Requirement To Pay) from the Government of Canada. Understanding the steps to halt this process can alleviate a significant amount of stress and help you regain control over […]

How Many Times Can You Do A Consumer Proposal

Ever felt like you’re stuck in a financial maze with no exit in sight? Debt can weigh you down, making every day feel like an uphill battle. But what if there’s a way to reset and start fresh? How many times can you do a consumer proposal? The straightforward answer is that you can file […]

Who Can Put a Lien on Your House in Canada?

Liens can significantly impact property ownership in Canada, often catching homeowners off guard. Understanding liens—what they are, the types that exist, and who can place them on your property—is crucial for any homeowner. This article unpacks the complexities of liens, explores potential lien holders, and discusses the consequences they can have on property sales. It […]

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limited compnay declaring bankruptcy

I have a limited company which I’m considering filing for bankruptcy, but making the final decision, I would like to know the pros and cons with this move, espeically the consequences, thx

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One Response to “limited compnay declaring bankruptcy”

A licensed trustee said...

It almost never makes sense for the owner of an incorporated company to assign the company into bankruptcy. First, most trustees will require you to pay around $10,000 up front in order to start the process (a personal bankruptcy is much cheaper) due to all of the legal requirements. Second, one of the purposes of bankruptcy is to prevent the creditors from seizing assets; if the company has no assets, there is nothing to seize. Finally, as a director of a corporation you are personally liable for certain debts, such as certain government obligations; a corporate bankruptcy does not change that.
I suggest you contact a trustee or bankruptcy lawyer to review your options in more detail.