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.
Need some questions answered?
Wondering if bankruptcy is for you?
If you feel that your situation is so bad that you may need to declare bankruptcy, don’t worry. You’re not alone. This is how a lot of people feel when they don’t see any light at the end of the tunnel.
Fortunately, for many people who feel this way, there are other less severe options. Speak with one of credit counsellors to learn all your options. They’ll be happy to carefully review your whole financial situation with you and answer any questions you may have. Speaking with our certified counsellors is always free, confidential and without any obligation. We’re here to help.