effects on a company after filing personal bankruptcy

December 26th, 2007 by Questions

i am the sole shareholder of a pasive alberta corporation, this company is the sole shareholder of three other corporations(Ontario, Manitoba, and Federal). What would a trustee do if i filed personal bankruptcy?


One Response to “effects on a company after filing personal bankruptcy”

, Barton Goth GCO Bankruptcy Trustees said:

First in bankrutpcy you are not eligible to be a director of a limited company, so that may cause you some significant issues. However, one way around this is to file a proposal instead of a bankruptcy as there is no such limitation in a proposal.

Second thing that is important, is that the company and all of it’s holdings will have to be valued. The reason that this is important is that when you file for bankruptcy all your property vests in the trustee (unless it can be claimed exempt under the provinces exemptions, which shares in a company cannot be). If it is determined that there is any value to the company and any of the companies holdings (and you must provide full details of all the companies holdings) you will be required to provide money in lue of this value into the bankruptcy estate. If you do not then the trustee would likely have to liquidate all of the assets of the company in question.

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