Comments on: Handling of Shareholder`s Loans when Shareholder Files Personal Bankruptcy http://www.bankruptcy-canada.ca/what-i-keep-or-lose-in-bankruptcy-in-canada/2008/04/handling-of-shareholders-loans-when-shareholder-files-personal-bankruptcy.html Personal Bankruptcy Canada Blog Fri, 10 Feb 2012 15:23:44 +0000 hourly 1 By: Barton Goth GCO Bankruptcy Trustees http://www.bankruptcy-canada.ca/what-i-keep-or-lose-in-bankruptcy-in-canada/2008/04/handling-of-shareholders-loans-when-shareholder-files-personal-bankruptcy.html#comment-31075 Barton Goth GCO Bankruptcy Trustees Wed, 30 Apr 2008 13:09:33 +0000 http://www.bankruptcy-canada.ca/what-i-keep-or-lose-in-bankruptcy-in-canada/2008/04/handling-of-shareholders-loans-when-shareholder-files-personal-bankruptcy.html#comment-31075 Well first off it technically wouldn't be you that would owe the estate, it would be the limited company. So if there is money in the limited company it would come from there. Secondly, if you loand the company $50,000, the company is responsible to pay the full $50,000. This isn't one particular director it is both directors. So you and your partner will each be 100% responsible that the $50,000 is repaid. Now practically speakng, if there isn't any money in the limited company then the trustee has to decide what is the best avenue to attempt to collect this money. They may have to sue the company, obtain a judgement and wait until there is some money that comes into the company, or potentially if there are any assets in the company they may register a lien on those assets. Alternatively, the trustee may find that there is absolutely no likelihood of being able to collect this money from the company. It really depends on what type of company it is, so I recomend you contact a <a href="http://www.bankruptcy-canada.ca/emailUs.htm" rel="nofollow">local trustee</a> as more details surrounding this situaiton will be necessary to provide the detailed explanation you will need. Well first off it technically wouldn’t be you that would owe the estate, it would be the limited company. So if there is money in the limited company it would come from there.

Secondly, if you loand the company $50,000, the company is responsible to pay the full $50,000. This isn’t one particular director it is both directors. So you and your partner will each be 100% responsible that the $50,000 is repaid.

Now practically speakng, if there isn’t any money in the limited company then the trustee has to decide what is the best avenue to attempt to collect this money. They may have to sue the company, obtain a judgement and wait until there is some money that comes into the company, or potentially if there are any assets in the company they may register a lien on those assets. Alternatively, the trustee may find that there is absolutely no likelihood of being able to collect this money from the company. It really depends on what type of company it is, so I recomend you contact a local trustee as more details surrounding this situaiton will be necessary to provide the detailed explanation you will need.

]]>