Professionals and self-employed individuals may ask about the status of their business if they were to file for personal bankruptcy and whether they could keep their business alive. The answer is: In most cases they can file for personal bankruptcy and keep their business active. However, filing for bankruptcy in some situation can be more complex than a lot of small business owners realize. The structure of the business and the types of creditors are two factors to consider.
Contact Donald Cameron , Barrie paralegal for more information. We know that the vast majority of the people we help are honest, hard-working individuals who, often through circumstances beyond their control, find themselves in financial crisis.
In addition to personal credit card, bank loan and overdraft debts, most professionals and self-employed individuals are often indebted to employees, landlords and the taxation authorities for arrears in personal income tax and HST/GST.
It’s vital to understand all the available options and what the personal implications can be in either bankrupting or closing the business. It’s also important to consider the business structure and the implications of that structure.