I have been running a small construction company for 6 years, with little or no administrative experience. Revenue Canada has finally caught up to me and assessed me with almost 50,000 in debts; even for GST that I never collected yet they say I owe. As well, I have approximately $20,000 in personal debt. For almost two years I have been on salary for a company that a family member runs, as they have the office experience to do the books properly and remit all moneys to government agencies. I am locked in to a $1,200 to $1,600 a month salary and have agreed to pay Revenue Canada portions to prevent them from garnishee. Should I declare bankruptcy, should i wait a year until my university loans are 10 years old, and make monthly payments till then? Does bankruptcy affect the family members' company that I am working for? So many questions please help me?

• if you are paying Revenue Canada a large portion of your income, does that allow you to pay your other creditors? If not, you may need to consider a proposal or bankruptcy to deal with all of your debts together.
  
  
• if you can wait until your student loans are 10 years old, that would allow you to include them in a bankruptcy or proposal. If more immediate relief is needed, then the student loans must be dealt with later.
  
  
• if you have an ability to make some payments on a monthly basis you may want to consider a formal proposal to your creditors, done through the Trustee. That would allow you relief from the creditors while settling the debt without going bankrupt. Revenue Canada will usually accept a proposal if it is reasonable based on your current situation.
  
  
• without knowing the corporate structure of your company I can't tell you how it will be affected by a bankruptcy or proposal. An undischarged bankrupt can't be the director of a corporation.
  
  
• your employer should not be affected by your situation.

Ann Clarke
phone: (403) 296-2972
aclarke@moneyhelp.ca