Question Asked...
We are extensively in debt following the closing of a failing retail business.
Our farm revenues are what is sustaining us through this difficult time – can we lose the assets of the farm if they are used to generate income – if we file bankruptcy??
Also – our farm truck – do we have the option of buying back the equity on our vehicle – or will it be automatically taken?? It is used and might have a value of about $15,000.
Although we do not have cash flow – we have a commercial building that is up for sale – any proceeds from a sale will be used to pay off the debt – as there is plenty of equity in the building – re-financing is not possible in this case.
Have you heard of situations where creditors will accept a promise to pay – once assets are liquidated??
We’re hesitating declaring bankruptcy – as there is substantial equity in our building -and the sale would pay off most of our debt. However – we don’t know how to hold off creditors until we sell the building. Any suggestions in this case??
thanks – your blog is quite helpful
What could happen to assets of the farm depends largely on what province you live in. Each province has legislation that determines what assets are exempt from seizure in a bankruptcy situation. For more information specific to your province you are best to contact a licensed trustee.
As far as potential options that can provide payment to creditors upon liquidation of specific assets, this is potentially done through the filing of a consumer proposal. The proposal legislation is very flexible in terms of type of arrangement and could likely provide you the time it sounds like you acquire.