Small Business Bankruptcy in Canada
Same as Declaring Personal Bankruptcy
No one wants to declare business bankruptcy or expects to end up insolvent and unable to live up to their financial obligations. When a business is a sole proprietorship or partnership, its bankruptcy is essentially a personal bankruptcy. This is because the people are the business. Legally, the assets of the business are not separate from someone’s personal assets.
If a business is incorporated, then legally, the business and its assets are their own entity. If the business faces financial hardship and must consider insolvency options, the assets of the business are separate from the owner’s personal assets. Business bankruptcies can be quite involved, so contact us to get help finding a trustee in your area who has experience with business bankruptcies.