Incorporation and personal bankruptcy
May 3rd, 2008 by Questions
If I own 100% of the shares of an incorporated business , what happens to the corporation if I file personal bankruptcy? Will the corporation also become bankrupt if the trustee can’t find a buyer for the shares?
Will all transactions of the corporation in the three months preceding my bankruptcy come under scrutiny? (large bonuses to relatives for example)
Will the creditors of the corporation (my relatives) be given preference over my creditors to the corporation’s assets?
Will unpaid salaries , bonuses , vacation pay for the employees (my relatives) be protected?