Options To Deal With Creditors

2009-12-23   minute read

There are several options available to deal with your creditors.....the right one for you is going to partially depend on what your income now looks like, and how much equity you have built up in your assets. The first question to answer is.......was this business operating under your name as a sole proprietorship, or was it running as a LTD or incorporated company? If it was a sole proprietorship, the debts from that company are the same as any personal debts you have.....they are all debts that you personally owe. If it was a LTD/incorporated company, do you have any personal guarantees for any of the company's debts?  IE:  GST, payroll source deductions, employees or personal guarantees of any kind? The next question is to decide which option is right for you.  There are ways to restructure your debts if you have the income, assets or outside help to do so.  Bankruptcy would be the option where you don't have the means to repay or make settlement with your creditors.  These options are outlined further on our website athttp://mnpdebt.ca/en/explore-your-options/Pages/default.aspx In Alberta, you are allowed to keep $5,000 equity in your principle vehicle, and $40,000 equity per house.  If you do need to file for bankruptcy to deal with the creditors, you would be allowed to keep these assets so long as you are under these equity limits, and so long as you are current on the payments. I would recommend you contact one of the MNP Trustees or counsellors in your area.  They can be found on our website atClick here Donna Carson, CGA, CIRP, Trustee Calgary and Red Deer regions 1.877.500.0792    [email protected]    

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