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”
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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).