bankruptcy & incorporation
May 2nd, 2010 by Questions
I own a small business; it is incorporated, and I own real estate in my personal name.
If I file for bankruptcy for the business, will this affect my personal life? And can the other businesses (landlord, suppliers, and other vendors), who know where I live, hold me personally responsible for the outstanding amounts owed by the business?
Posted from: Ontario
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May 04, 2010 at 7:24 am, A licensed trustee said:
If you have personally guaranteed any of the corporation’s debts and you place the business into bankurptcy then you will be responsible for those debts. In addition, the directors of the corporation are persopnally liable for all of the businesses government debts – taxes, source deductions, etc.
You should speak to your accountant or a trustee BEFORE you decide to place the business into bankruptcy as in most cases, it is not worth the cost of doing so…