Hello, I am a director of a smal corporation. I have locked into a lease that expires June 2011 and cann0t afford these payments as mycompany is not making any money. While this is the big debt, I have a variety of suppliers, my utilities, some taxes (gst and corporate tax) and a bank loan that I am considering bankruptcy. I see that you offer a a free, confidential assessment for personal situations, is this available when a business is involved? Where do I start? Am I cleared of the tax debt? How long is the process?
Bankruptcy Alberta: Free Information about Bankruptcy in Alberta
Yes, this consultation is available for both business and personal so the best place to start is to contact licensed trustee and he will be able to help you determine what the best course of action might be. Rest assured that tax debt can be dealt with in many situations, but there can be some personal ramifications if you look at simply filing a corporate bankruptcy. The trick comes down to director liability, as debts like arrears of wages , GST and source deductions survive a corporate bankruptcy, the result is there is often very little incentive to put a company into bankruptcy (depending on the assets and such) as you will still have to deal with some of these resulting liabilities personally. As a result you should discuss with the trustee the possibility of simply closing the business and potentially filing a consumer proposal or a bankruptcy to deal with this resulting shortfall.