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Income from intellectual property after bankruptcy

I started a software company in Canada in 2005. I invested a huge amount of my money in the business. I have also registered 7 patents in the U.S in my name. I wasn`t able to sell the product that we developed and am facing a cash flow crisis. The business owes about 300,000 dollars to various creditors which I have personally guaranteed and I owe an additional 120,000.
If I declare bankruptcy in Canada will I lose the U.S patents? Is there any way that I can retain them. They currently generate no revenue. If I manage to keep the patents will I have to pay the trustee any royalties that I may recieve after discharge?

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One Response to “Income from intellectual property after bankruptcy”

Barton Goth GCO Bankruptcy Trustees said...

Technically all these assets will vest in the trustee when you file bankruptcy as they are considered non-exempt property. At that point it is up to the trustee how he will realize on these patent’s. If there is no existing value you may potentially arrange to purchase these assets back from the bankruptcy estate for some negotiated figure, or you could consider filing a proposal instead of a bankrutpcy as the are no vesting provisions with a proposal.

Either way you are best to discuss this with the local trustee you are planning on dealing with so you can get a good idea how they anticipate dealing with these types of items.