July 18th, 2008 by Questions
If I file for Bankruptcy (on the personal side) and my business is not incorporated.
What is meant by buying the business back from the trustee; would the trusee have controle of the deposits and withdrawls, or would I run it as usual. How would a budget be set for running a business and filing for bankruptcy??
Posted from: Ontario
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July 21, 2008 at 10:05 am, Barton Goth - Goth & Company Inc. - Bankruptcy Trustees said:
This is a tricky one to explain via this type of medium so I strongly recommend you discuss the details with a local trustee. However, the idea is this. If you have a proprietorship, you may have certain assets that are required to run your business that are protected under provincial law would need to be turned over to your trustee to be sold. This could be anything from a photocopier, to a computer, to a customer list. So if you have any of these types of assets that the trustee must sell for the general benefit of your creditors the only way for you to retain this property would be to “buy back” these assets at fair market value.