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 […]

FILL OUT THE FORM BELOW AND RECEIVE A NO-OBLIGATION CONSULTATION

"*" indicates required fields

Name*

Phone Number*

Email*

This field is hidden when viewing the form

What's the best time to contact you?*

Location*

What city do you live in?*

This field is hidden when viewing the form

Source

How can we help you?

Agreement*

I understand that Bankruptcy-Canada.ca does not provide debt relief services directly and agree to securely share this information with a local Licensed Insolvency Trustee (LIT) for a free, confidential consultation.

Comments

This field is for validation purposes and should be left unchanged.

Select Trustee By Province

bankruptcy & incorporation

I own a small business; it is incorporated, and I own real estate in my personal name.

If I file for bankruptcy for the business, will this affect my personal life? And can the other businesses (landlord, suppliers, and other vendors), who know where I live, hold me personally responsible for the outstanding amounts owed by the business?

Posted from: Ontario

Share this post:

X (Twitter) Facebook LinkedIn Email

One Response to “bankruptcy & incorporation”

A licensed trustee said...

If you have personally guaranteed any of the corporation’s debts and you place the business into bankurptcy then you will be responsible for those debts. In addition, the directors of the corporation are persopnally liable for all of the businesses government debts – taxes, source deductions, etc.

You should speak to your accountant or a trustee BEFORE you decide to place the business into bankruptcy as in most cases, it is not worth the cost of doing so…