July 22nd, 2011 by Questions
Canada Revenue Agency reassess my tax return in 2005 (I was a returning resident at that time) and sent some money back to Canada to purchase my house. CRA treated as the business income and as the result, I owe them $450,000. Beside that I am having a personal debts of about $300,000 which I cannot pay. May I know if I can file for bankruptcy? Thanks,.
Posted from: Ontario
One Response to “Bankruptcy”
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July 22, 2011 at 6:54 am, A licensed trustee said:
You may ceratinaly file, but the obvious question I have to ask is, “what happened to the house you bought?” If you used all that money to buy a house and you file for bankruptcy then the house may have to be sold – at the very least you will have to pay an amount into the bankruptcy equal to what you paid into the house.
You should probaly speak diredtly with a trustee about your situation – bankruptcy may seem like the answer, but I suspect you’ll need to look at some other options as well…