What will happen to my business?

December 18th, 2005 by Questions

I opened a restaurant 6 months ago. It is not showing a profit yet. I am the sole person in the corporation. If I declare personal bankruptcy will they go after the business and if so what will happen to my restaurant? Can they make me sell the business?

Questions

One Response to “What will happen to my business?”



, Barton Goth, GCO Inc. Bankruptcy Trustees said:

This is a very complicated issue that you will need to discuss with a licensed trustee in your area. Technically the company can remain solvent, however, under the Business Corporations Act (both federal and its provincial counterpart) if you file a bankruptcy you are not eligible to be a director of a limited company. Furthermore, if your company is solvent, has any assets or residual value to it, this will be considered an non-exempt asset in bankruptcyand any value is going to have to be reflected on your Statement of Affairs and made available to the creditors (either directly or indirectly).

However, the thing to consider is with no income, and an unprofitable business, how are you going to live? You may be forced to close the business and seek other employment, not because of a bankruptcy, but due to the economic reality you face.

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