Personal bankruptcy & Incorporated Company
December 1st, 2006 by Questions
I am the director of my incorporated company. It is almost inevitable that I declare personal bankruptcy. The company has no assets and no monies owing to CRA. GST is up to date. None of my debts are a result of the company. I was informed that I could have a company but I could not be director of that company. If I appoint someone to be director of my company, what position can I retain?
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December 01, 2006 at 4:48 pm, A licensed trustee said:
Anyone can be an employee of a corporation while they are bankrupt. You are correct that you cannot be a director of a corporation while bankrupt.
Your corporation is one of your assets, so if you go bankrupt, if the corporation has any value, you would lose the value of the corporation. Since your corporation has no assets, it is unlikely it has any value, so you can probably keep it if you go bankrupt.
Whenever a corporation is involved I suggest that you contact a licensed trustee to fully explore your options before making a decision about whether or not bankruptcy is the correct option for you.