October 26th, 2007 by Questions
If you have a small business (ie: sub contacting)that is registered and have a GST # before you file for bankruptcy, can you continue that business once you aply for bankruptcy
One Response to “Small Business”
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October 29, 2007 at 8:52 am, A licensed trustee said:
Yes, you may continue the business (even) after you have filed for bankruptcy, but there are a couple of conditions:
1) you will have to register for a “new” GST number. Your bankrptcy filing cancels your existing GST nunber (even if you don’t owe any money to GST);
2) if the business was incorporated you may no longer own the corporation. Your shares are an asset that you sign over to your trustee (for the benefit of your unsecured creditors). If your business is incorporated you need to have a long detailed chat with your trustee BEFORE you file; and
3) if the business is not incorporated you still have to talk to your trustee about the tools and equipment that you need to operate the business as you may have signed over ownership of your tools as part of your bankruptcy too.
Use the links to find a trustee in your area to discuss your business before you file.