confused about bankruptcy
1 as a business cra accounts are cleaned up by filing bankruptcy? hst and income tax.
2 what happens to your personal assets.
3 can you keep some of your assets
Connecting You with Trusted Licensed Insolvency Trustees – We’re Here to Guide, Not Decide. Learn More
1. If a corporation goes bankrupt, they are out of business. Any business assets would be liquidated and the proceeds distributed to the creditors, including CRA. In most cases the directors of the corporation are also personally liable for government debts, so CRA could pursue them personally for the outstanding amounts. If the directors then went personally bankrupt, those government debts would be included in the bankruptcy.
2. and 3. What happens to your personal assets depends on where you live in Canada. You can read more in our article about exemptions.
I suggest you you contact a licensed trustee for a complete review of your situation.
I’m sorry, but your first question is a little unclear: if you are asking if bankruptcy deals with government obligations (such as income taxes, sales taxes, etc) the answer is “yes”.
In regards to your second and third questions, the basic concept behind bankruptcy is that you sign over the things that you own (your assets) in exchange for the elimination of your unsecured debs (liabilities). You may not have to sign over everything – there are exemptions in each province to allow you a modest standard of living.
The best way to proceed may be to contact a trustee where you live and ask them these questions again.