January 5th, 2012 by Questions
Can I declare Personal bankruptcy if I have a limited company
Posted from: British Columbia
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January 05, 2012 at 12:44 am, Barton Goth - Goth & Company Inc. -Trustee in Bankruptcy said:
Yes you can file for bankruptcy, but there will be some challenges due to the limited company.
The first challenge is that you cannot be a director of a limited company while you are in bankruptcy so you will have to transfer the directorship to someone else’s name while you are in bankruptcy.
The second issue is that the shares you hold in this limited company are an asset that would need to be realized on in a bankruptcy. Now this is only if there is any value to the shares. To determine if the shares are going to be an issue or not you are best to contact a local trustee.
The other option to consider is it may be easier to file a consumer proposal instead as there aren’t any restrictions on the operating of a limited company during the proposal.