February 15th, 2009 by Questions

after filing for bankruptcy is starting a business protected from any creditors? and does it have to be incorporated?

Posted from: Ontario


One Response to “green”

, A licensed trustee said:

If by “after bankruptcy” you mean after you have completed your bankruptcy and been discharged then yes, any new income you have (including income from a new business) is protected from your old creditors. When you are discharged from bankruptcy you are no longer legally required to repay your old debts.

If by “after bankruptcy” you mean after you’ve filed for bankruptcy (but before it has been completed) then the answer is yes, but only if you actually complete the bankruptcy. If you do'[t complete the bankruptcy then when your trustee closes your file your old debts can “come after you” again…. So, make sure you complete your bankruptcy!

As an added note, while you are an undischarged bankrupt (ie during the bankruptcy itself and until you complete the bankruptcy properly) you cannot be the director of a corporation. You may own a corportation, but someone else needs to be legally responsible for it’s bills.

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