Can You Operate A Business During A Bankruptcy

2008-09-29   minute read

We see many self-employed individuals who wish to continue operating their businesses. In most cases, you can continue to operate your business just the same as you were doing before the bankruptcy.  In most provinces, your tools of trade (any assets you use in the business) are protected (seeExempt Assets) and cannot be touched in a bankruptcy or proposal. In BC, the protected amount is $10,000 (auction sale value). If you operate as a sole proprietorship, you can often just continue with your business as you normally would. If you operate through a corporation, it's a bit different. In most provinces, you can't be a director of a company while you're in bankruptcy. You may be able to have a family member assume this role while you're going through a bankruptcy. As well, if the company has a net value (assets are worth more than the company's debts), you should talk to us determine if you can retain ownership of the company and continue operating or to explore other options so that you can continue with your business operations. Judy A. Scott Vancouver - Port Moody - Abbotsford 604-949-2113

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