Questions about bankruptcy.

Posted on Thursday, April 17, 2008

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I run a small oilfiled service company under my own name. I have run into tax problems with CRA.

There are a wide variety of things that have got me here, but the end result is I ow CRA about $100,000 and other creditors about $40,000.

I have very few assets…no house,property etc… I do have an old pick-up that is in both myself and wifes name. I thnk if I were to sell it today I could get about $7,000. My fist queiton is with the truck. If I file for bankruptcy can I keep my truck, I use it for work and without the truck I have no work.

As well, my wife runs a small incorporation. She is the director and sole shareholder, I have nothing to do with it what so ever. Will her company be affected? Does that companys income change anything if I file for personal bankruptcy?

Filed under: Bankruptcy
 posted by Questions @ 8:41 am
1 Expert Comment:

 At April 21, 2008 | 9:48 pm , Barton Goth GCO Bankruptcy Trustees Said...

When you file for bankruptcy most people don’t have much difficulty keeping secured assets. However, to do so you must:

a) be up to date on your current loan payment;
b) can afford to continue making these payments; and
c) and have the cooperation of the secured lender.

In practice we find that most secured lenders prefer for you to keep the vehicle, but technically they have the power to seize the vehicle should they choose.

As for your wife, as long as she wasn’t connected to your debt or your company in any way then you don’t have anything to be concerned about.

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