February 9th, 2011 by Questions
I have an incorporated business. I am wondering If I file for personal bankrupcy will it have any affect on my business?
Posted from: Alberta
One Response to “Incorporated Business”
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February 10, 2011 at 11:09 am, Barton Goth - Goth & Company Inc. -Trustee in Bankruptcy said:
This is a good question and your right, the filing of a bankruptcy will have an impact on your business.
The first thing you will find is that when you are in bankruptcy you are not allowed to be a director of an incorporated entity. So assumming you are the director, you will have to get this transferred into someone elses name.
The second aspect is that you must disclose to those people you are transacting business with that you are going through a bankruptcy.
Due to some of these restrictions you find a number of business owners who opt to file a consumer proposal instead as it helps to avoid some of these limitations.