If you're looking for self-employed bankruptcy advice, Smythe Insolvency welcomes you. Bankruptcy can be the best choice you've ever made or the worst choice you've ever made. It all depends on timing! Before you pull the trigger on bankruptcy, Smythe Insolvency kindly invites you to consult with one of our experts for self-employed bankruptcy advice. You'll be glad you did!
Bankruptcy is a serious and life-changing event. It merits much forethought, preparation, and consideration. Often, there are other debt relief solutions that are more viable than bankruptcy. Of course, there's no way for us to know until we speak with you. Contact us today for a consultation.
Is Bankruptcy Different for Self-Employed People?
One of the biggest problems with being self-employed, from a bankruptcy standpoint, is that self-employed entrepreneurs don't have pay stubs. For an employee who gets paid in regular intervals, it is easy to determine his or her pay - just look at the pay stubs over a period of time! However, people who are self-employed must show their income after they file bankruptcy. Their income is based on their net income as a sole proprietor, but they may deduct business costs first.
Will Bankruptcy Hurt a Small Business Owner in Canada?
It is important to contact a bankruptcy expert who can assess your situation and explain all of your options clearly to you. Bankruptcy is a big decision with long-ranging ramifications. It is one that should not be made whimsically or without diligent research and consideration. What are the long-term ramifications of bankruptcy for self-employed persons?
Put simply; you will probably not be able to obtain new credit once you file for bankruptcy as a self-employed person. This is important to note. In a sole proprietorship, income usually fluctuates, and business owners might rely on credit or overdraft privileges to carry them through the slow times of their business. Once you file bankruptcy, you will not have that option.
Can You Keep Your Business Following Bankruptcy?
One of the things that our clients ask us immediately upon consulting with us is "Can I keep my business following a bankruptcy?" In a word; 'yes.' Still, you will likely face some challenges after filing bankruptcy that you should be aware of and plan for.
For example, incorporated businesses must continue as a sole proprietorship following a bankruptcy. Either that; or you will have to resign from the position of director in your business. Why the latter? In Canada, you can't be a director of a corporation if you file bankruptcy.
Contact Smythe Solvency
Fortunately, very few of the bankruptcy claims that we file are for self-employed people, but the ones that are self-employed tend to run into roadblocks more often than employed individuals. Indeed, there are multiple problems that can arise from self-employment bankruptcy. Small business owners have a different set of rules than the rest of us when filing bankruptcy. The best thing to do is to contact a bankruptcy expert like Smythe Insolvency for reliable self-employed bankruptcy advice.
Self Employed Bankruptcy Advice