Continuing A Business During A Bankruptcy

2009-08-19

Many people continue operation their busineses (incorporated or otherwise) during a bankrupcy.  It depends, in part, on whether the company has any value at the date that you fo into bankruptcy. If your business is not profitable, then the shares of your company may have no value.  In this case, a bankruptcy trustee would normally allow you to keep the shares and it's your choice as to whether you continue the business or not. In most provinces, however, you can't be a director of a corporation during the time that you're going through a bankruptcy.  So, if you were going to keep your company and operate the business while you're going through a bankruptcy, you would have to find someone else to act as a director of the company (i.e., a corporation has to have one or more directors). If you're going to continue operating the company during a bankruptcy, you should discuss this with your trustee and get some advice specific to your corporation.

Latest Blog Posts

2025-10-21

How we helped a client decide between a consumer proposal and bankruptcy

Leah Drewcock

A client thought bankruptcy was their only way out. See how a consumer proposal helped them keep their home and repay debt with confidence.

Read More

2025-10-20

Seniors and Debt

Pamela Meger

Alternatives to Bankruptcy Bankruptcy Consumer Proposal Lifestyle Debt MNP Consumer Debt Index

Just when seniors should be relaxing and enjoying the fruits of their labour, many find themselves struggling financially — an unsettling contrast to the ease they’d hoped to live their golden years.

Read More

2025-10-17

How buyer’s remorse laws can help you stay out of debt

Alana Orrell

This is called buyer’s remorse. In some cases, Canadian law provides protections that can help you reverse these costly decisions and avoid sinking further into debt. 

Read More

Consultation icon