HST Debt
March 14th, 2012 by Questions
My common law partner and I are filing a joint personal bankruptcy. We are self-employed and our limited company has no assets so we were advised that instead of bankrupting the company, it would just cease operating. The company owes ~$30,000 to CRA for HST collected – once we declare bankruptcy, will this debt also be cleared?
Posted from: British Columbia
One Response to “HST Debt”
Please post a follow up comment below:
(Note: comments are reviewed by moderators and then posted after approval. In addition, due to high volume some of the comments might not be posted.)
You must be logged in to post a comment.
March 14, 2012 at 8:13 am, A licensed trustee said:
You should be speaking to your trustee about this, but since it is a common question we’ve posted an answer.
When you file for personal bankruptcy you are protected from the corporations HST debt – you are personally “cleared” from the debt when you complete your bankruptcy.
The corporation will still owe the debt and the government may continue to send you statements/bills for the next 3 years – there’s not much you can do about that (unless you want to pay to bankrupt the company too. Most trustee, myself included, will tell you not to bother bankrupting the corp – it’s not worth the fee you will have to pay).