is a consumer proposal or bankruptcy
January 8th, 2010 by Questions
if i am the sole director of a franchise in that there is no personal stuff used as security but i am personally poor from unsecured credit cards $250000 does the franchise become part of the personall bankruptcy or does the franchise stand on its own.could i go personally bankrupt and keep the franchise or does that franchise become part of the inslovancy to satisfy creditors?
Posted from: British Columbia
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January 08, 2010 at 9:58 am, Barton Goth - Goth & Company Inc. -Trustee in Bankruptcy said:
If you own the franchise it is an asset that has to be addressed in both a bankruptcy or a consumer proposal scenario. Ultimately what would have to happen is the franchise would be valued and your unsecured creditors would have to realize the value of the buisness. This could be from you making payments over time or it could go as far as the sale of all the business related assets.
Ultimately your interest in the business is a non-exempt asset that would vest in the trustee (in bankruptcy) and arrangements would have to be made. The exact arrangements would largly depend on what the value of that business is.