I just transferred my shares in our incorporated company to my husband, so he is now the sole shareholder. If he were to declare bankruptcy, would his debts to the government (GST, QST, and payroll deductions) be wiped clean? Will his personal credit cards be included in the bankruptcy? And finally, would his bankruptcy affect my credit, since we have a loan on a trailer together?
What makes you liable for a company's tax debts is not being a shareholder, but being a director. When you resign as a director, you remain liable for the company's tax debts for two years. If you were not a director, you have no liability.
If you continue to pay off the loan on the trailer and the debts for which you are jointly liable, your credit will not be affected.
If you continue to pay off the loan on the trailer and the debts for which you are jointly liable, your credit will not be affected.
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