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

2025-09-04

Will Bankruptcy Erase All Of My Debt?

Mary Plahouras Rob Shier

Bankruptcy

The intention of Canadian bankruptcy law is to provide honest and overextended debtors the opportunity for a financial fresh start.

Read More

2025-09-02

How to budget when you’re living paycheque to paycheque

Caryl Newbery-Mitchell

Lifestyle Debt Debt Solutions

You already know the many benefits of skilled money management. The fact you’re reading this blog post says at least that much. Your challenge, like for most households, is how to navigate the seemingly infinite demands on your frustratingly finite income.

Read More

2025-09-02

MNP’s Atlantic Canadian guide to affordable fun

Lifestyle Debt

Have fun on a budget with our guide to affordable activities in Atlantic Canada.

Read More

Consultation icon