Investing into new business

May 24th, 2009 by Questions

During bankruptcy, I would like to start a new business that requires to invest some money into computer equipment. At present, I don`t have enough money to purchase it so I need to allocate some funds every month until I get a necessary amount to purchase it, and then it becomes a business expense. How should I indicate this on monthly forms?

Posted from: British Columbia

Questions

One Response to “Investing into new business”



, A licensed trustee said:

You’d better speak to your trustee about this – if they are legitimate business expenses and you are generating income from the assets then you’re probably ok. If there’s no income stream then your trustee will probably tell you wait until you’ve been discharged to start your new business.

This question is similar to the RRSP question I just answered – you can’t use these types of expenditures to reduce your payment obligations during your bankruptcy. If your trustee decides they are not legitimate then your trustee will simply add them back to your income when they calculate your surplus income payment. Speak to your trustee before you spend the money…

Please post a follow up comment below:

(Note: comments are reviewed by moderators and then posted after approval. In addition, due to high volume some of the comments might not be posted.)