Business Debt FAQ

No. It is not possible to file for corporate bankruptcy online. You must meet with a Licensed Insolvency Trustee in person.

The cost of filing for bankruptcy depends on your unique situation.

You are only liable if you have co-signed or guaranteed a debt for your spouse's business.

Your personal credit rating will only be affected if you signed a personal guarantee for a debt. If your business is operating as an LLC or corporation, your personal credit rating should not be affected.

Your first responsibility is to promote the success of the company by fostering relationships with customers and suppliers. If the company is in financial difficulty, you should make sure the company does not make additional commitments. If there is a chance of saving the business, you must take appropriate measures to negotiate new financing and work with creditors to reach a solution.

Your main responsibility will be to provide information regarding the business of the company to the insolvency practitioner specialists and/or the receiver.

A director, unlike a simple shareholder, is liable for any unpaid DAS (payroll deductions at source) and/or sales tax remittances (GST/PST). The company's bankruptcy does not change or absolve these debts.

If your business fails, you are treated in the same way as other creditors in respect of the money they have lent to the company.

Taking money from the company or transferring assets at less than their market value may constitute fraud. You could face criminal charges.

The Trustee/administrator has a duty to get the best price possible. If you've formed a new company, you can buy back your insolvent company with court permission, if you're the highest bidder.

A notice that a secured creditor must deliver to any debtor at least ten days prior to enforcing its security on the debtor's business.

The act defines the roles and protects the rights of everyone involved in bankruptcy (the debtors, creditors, trustees, Superintendent of Bankruptcy, the court).

In sole proprietorship, the business is not separate from the owner. If the owner files for bankruptcy, his/her business assets may be seized and sold.

Costs will vary depending upon the complexity of the Proposal proceedings.

This act allows companies in financial trouble to restructure their business and financial affairs if they owe their creditors more than $5 million.

WEPP compensates eligible workers for unpaid wages, vacation, and termination pay they are owed when their employer declares bankruptcy or becomes subject to receivership under the Bankruptcy and Insolvency Act.

You may apply if:

• Your employment has ended
• Your former employer has filed for bankruptcy or is subject to a receivership
• You are owed wages, vacation pay, termination pay from the former employer
• Amounts were earned during the eligibility period or your employment was terminated during the eligibility period ending on the date of bankruptcy or receivership

Our Licensed Insolvency Trustees represent lenders and other creditors in filing court documents to recover secured assets from debtors.

In the province of Quebec, a Licensed Insolvency Trustee must be appointed to initiate this type of legal action against debtors.