I have a small proprietorship. I owe more money than I can afford to pay back on credit cards and a line of credit. My biggest concern is the government. I owe CRA arioound $25k and they just started contacting my clients to direct payment to them. I have two real questions: Will bankruptcy help get rid of the debt to the government? Can the government seize money in a joint chequing account I have with my wife?
sole proprietor, Cra collection
Posted on Tuesday, August 5, 2008
posted by Questions @ 6:21 am
1 Expert Comment:
At August 8, 2008 |
9:35 am
, Barton Goth GCO Bankruptcy Trustees Said...
Yes, a bankruptcy will clear you from debts to your taxes, but in the absence of your bankruptcy any money that is in an account you are attached to is at risk. This would include money in a joint account with your wife.
If you are worried about a garnishee from CRA, my recommendation is to discuss a bankruptcy with a local trustee as quickly as you can so that they will no longer have the authority to garnishee.
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