May 21st, 2011 by Questions
If someone decides to declare bankruptcy as a bussiness owner and has a silent partner does the silent have to take over the bussiness? Or does the trustee take over the bankrupt portion of the bussiness? Also does the bussiness bankrupcy wipe out any personal debts as well?
Posted from: Ontario
One Response to “Bankrupt Bussiness”
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May 21, 2011 at 6:51 pm, Barton Goth - Goth & Company Inc. -Trustee in Bankruptcy said:
A business bankruptcy can cover a number of different areas, but without more specific information about the business, the nature of the debts, and the operations it is difficult to tell you the impact that a bankruptcy would have on a silent partner. To get a clear idea of what would happen given your situation you are best to review the specifics of your situation with a local trustee.
However, if you file a business bankruptcy it doesn’t have the ability to wipe out personal debts, unless you were operating the business as a proprietorship.