Personal Bankruptcy and being owner of a small corporation
If I file for personal bankruptcy, do I have to file for the corporation as well?
I have some inventory (my corporation)that I might be able to sell and get anything from 10,000.00 to 60,000.00 but it won`t be easy to sell. Producst are old and come from another company that filed for bankruptcy in 2001. In other words I would have to sell them for next to nothing if I want to get some money now. My best chance is to way for xmas.
Do I have to give this inventory to my trustee? The corporation is pretty much a way for me to sell the products legally and be able to give an invoice to customers, and that`s why I want to keep it.
What can I do? Please any advice is appreciated.
Posted from: Ontario
Due to the nature of your situation you really need to meet with a local trustee to discuss this. Essentially what would happen if you file for personal bankruptcy is the corporation you own is considered a personal asset, at least the shares in the corporation are. The corporation would have to be valued and then the shares realized. This is likely through a blow out sale of the inventory, but that is really up to the trustee.