Question: I owe taxes to the CRA due to reassessment and they are the only creditor I have. Due to the penalties and interest it will be impossible to pay them. The corporation has no income right now. I have a house and it has a good equity on it. Can I still make application for bankruptcy? what happens to my house and my cars?
Thanks
Answer: The answer depends on whether or not it is you personally that owes the taxes to CRA, or whether it is the corporation that owes the taxes. On the assumption that you owe the taxes, if you filed bankruptcy you would probably lose your house, or be required to pay the equity in your house to your estate.
Since your situation is complicated, and there are many variables, we strongly recommend that you consult a bankruptcy trustee to arrange an initial consultation to review your specific situation.