distressed

March 20th, 2013 by Questions

i have a business with a partner and bills are pilling up including hst income tax arrers payroll deductions and comp can we do a consumer proposal so we can keep our business going

Posted from: Ontario

Questions

One Response to “distressed”



, A licensed trustee said:

If your business is incorporated it cannot file a consumer proposal, but may be eligible to file a Division I proposal (a more complicated procedure that allows businesses and individuals with very high debt to offer proposals to their creditors).

If it is a true partnership, operated by individuals then the individual owners may file a consumer proposal, and it is possible (although unlikely) they might file a single proposal “jointly” to deal with the situation.

My best advice is to speak directly to a trustee, or a lawyer that specializes in insolvency matters. Either should be able to tell you whether or not a consumer proposal (or perhaps a Division I proposal) make sense in your situation.

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