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Declaring bankruptcy for business

I own a business for just over 10 years but is not profitable. My income tax records show a loss each year. I am trying to sell the business but since it is a loss each year, no one is interested in buying it. I had to remortgage my house to buy this business initially 10 years ago. I also had to use a shared personal line of credit with my wife in order to pay off some debts, including a court case that I won (but still had to incur costs for defense). My question is if I am in debt with this line of credit and also mortgage payments (which is really payments for the business), can bankruptcy be an option for me? If so, will my wife be affected for the business/mortgage payments and the line of credit?

Posted from: British Columbia

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One Response to “Declaring bankruptcy for business”

A licensed trustee said...

I think you need to use the links on this page to find a trustee in your area and give them a call. The short answer to your question is that bankrutpcy may be an option to sort things out for you, but you should consider all of your options with a professional before you decide what to do.

If you do decide to file for bankruptcy and your spouse has co-signed or guaranteed any of your debts then she will likely be held responsible for those debts – if she’s available then I suggest you take her with you when you go and see a trustee.