Question Asked...
if one is a director in a business that is incorporated and the business must go bankrupt can the director keep personal assets such as home and vehicles that are not connected to business?
Posted from: Ontario
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Posted on Friday, May 8, 2009 10:24 am
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If a business files bankruptcythe personal situation of a director is not impacted, nor are any of there assets unless the company has debts where the director has personal liability.
The debts that the director is at risk of personally are as follows:
1. GST arrears;
2. payroll remittances;
3. outstanding wages for employees (amount varies between province, but usually up to 6 months arrears)
4. any personal guarantees that the director has signed;
5. any penalties associated with negligence or misappropriation.
If you don’t have any of these types of debts then the business filing a bankruptcy won’t have any real impact on it’s directors or their personal assets.