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.