February 16th, 2011 by Questions

1. In a sole proprietorship and personal bankruptcy situation… why would the trustee ask for receivables for the prior 6 months to the application for bankruptcy?

2. Also, being that the sole proprietorship is an individual is there any reason both personal and business have separate bankruptcies and charges associated with it?

Posted from: Ontario


One Response to “Michael”

, A licensed trustee said:

1) I don’t see anything wrong or unusual with your trustee asking to look back 6 months for your business – likely they are just trying to get a fell for your income and they are getting information to help prepare your taxes.

2) If your business is a sole proprietorship then it cannot have its own bankruptcy – legally your business doesn’t really exist. Your trustee might be charging you more to clean up the business, in addition to the cost they are charging for your personal bankruptcy, but the business should not have its own bankruptcy number. If it does either you are mistaken and it is not a sole proprietorship, or your trustee has made a mistake. You need to speak to them to clear this up.

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