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If you are self-employed, you need to keep in mind your business assets and debts are not separate from your personal finances. A Licensed Insolvency Trustee will be able to review the options available to you, including a consumer proposal or bankruptcy.
If your small business is incorporated, we will work to determine the viability of operations. If viable, further discussion with your Licensed Insolvency Trustee will determine whether you will continue operations or make the move to wind down.
If operations are deemed viable and you choose to continue running your incorporated business, filing a consumer proposal to restructure corporate debt may be your best option.
A limited company can obtain protection (stay of proceedings) from its creditors, while at the same time continuing business operations. A consumer proposal allows you to negotiate with your creditors to settle past debts, helping to improve ongoing cash flow. Debts to Canada Revenue Agency can be included in the proposal and, in most cases, are substantially reduced.
If winding down your business is the best option for you financially, bankruptcy provides an orderly liquidation of all assets belonging to the company, as well as a fair and equitable distribution of proceeds to creditors.
The Director(s) of the limited company are responsible for any guarantees they have provided to banks or other institutions on behalf of the limited company. In addition, Director(s) may have further personal responsibility for debts such as outstanding payroll, or Goods and Services Tax.
If your company is experiencing financial difficulty, we are here to help. We understand that the financial pressures facing businesses today can be overwhelming and stressful.
The first step to financial freedom is setting up your free consultation with one of our Licensed Insolvency Trustees. Let us help you, contact one of our Licensed Insolvency Trustees today.