I have a limited company here in alberta. I have about 25k in tax debt, another 40k i owe to suppliers, a line of credit for about 20k. The corporation has no assets, do I need to file for Bankruptcy?
is a corporate bankruptcy necessary?
Posted on Monday, October 27, 2008
posted by Questions @ 7:20 pm
1 Expert Comment:
At October 31, 2008 |
8:43 am
, Barton Goth, Trustee in Bankruptcy Said...
From the sounds of it a corporat bankruptcy may not be necessary. Largely the purpose behind a corporate bankruptcy is to distribute the remaining assets of the corporation amoung the creditors in a fair and reasonable fashion. IF there is no corporate property there is largely no point.
Of course you would need to come in and we can look at this in a little more depth to determine if this is infact the case, but my guess is that you will need to look at things personally as you may have a component of the tax debt that you are responsible for personally, if there was a guarantee on the line of credit you may have to deal with that personally, but these things would occur regardless whether the corporation was placed into bankruptcy or not.
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