business and personal

October 30th, 2008 by Questions

We have 2 Ltd. companies and they both are a maxxed to the limit, we also have numerous credit cards and loans exceeding limits. We signed personal gaurantees on these businesses and LOC`s. My question is what happens to these broke companies? All taxes are paid but loc`s are maxxed, so I`m thinking about personal bankruptcy. Does this include my businesses as well or do I file them separetly? Do I still have to file yearly taxes for these companies?

Posted from: Alberta

Questions

One Response to “business and personal”


October 31, 2008 at 10:00 am, Barton Goth - Goth & Company Inc. -Trustee in Bankruptcy said:

From the sounds ofit you are better off to simply close the two companies, don’t place them into bankruptcy, simply ensure their final year end tax returns are done and then walk away.

If you file for bankruptcy personally you will be cleared from any of the debts that will survive the corporate entity and you won’t be responsible for the cost of the companies filing a bankruptcy. If your corporate creditors want to force the companies into bankruptcy then they can do so, but they will be responsible for the cost, not you.

In this situation it will be important for you to consult with a local trustee just to ensure that there is nothing in the companies that suggests you need to place them into bankruptcy yourself, but from the limited information above it doesn’t sound like you will have to worry about it.

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