Bankruptcy and incorporating a business

May 15th, 2010 by Questions

I am considering bankruptcy. I have a small business (partnership) and there is someone that is interested in going into business with us, but we would have to incorporate the business. Can this be doing during bankrupty? If no, is there a certain length of time once you are discharged from a bankruptcy before you could be part of an incorporated business?

Posted from: Ontario


One Response to “Bankruptcy and incorporating a business”

, A licensed trustee said:

There are no restictions on owning or opening a new business during a bankruptcy – even a coprporation, BUT if you are an undischarged bankrupt you may not serve as a director of the corporation.

BEFORE you decide to file make sure you discuss your plans in detail with your trustee. They’ll be able to walk you through your options.

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