There are two main types of bankruptcy, one is personal and the other is business. For both types you will need to make an informed decision before you decide to go forth with this option. There is a lot of information about bankruptcy that can help you decide if you should file or not.
Personal Bankruptcy Canada - Know How Bankruptcy Works and Get Info on Your Other Options
Before you file for personal bankruptcy it’s important that you get the facts so that you can make an informed decision. There are alternatives to bankruptcy which may work for you. Filing for bankruptcy should always be a last resort. It costs money to go bankrupt and the process to be discharged from bankruptcy takes time.
Small Business Bankruptcy Canada - Same as Declaring Personal Bankruptcy
No one wants to declare business bankruptcy or expects to end up insolvent and unable to live up to their financial obligations.
When a business is set up as a sole proprietorship or a partnership, a business bankruptcy is essentially a personal bankruptcy.
This is because the people are the business. Legally, the assets of the business are not separate from someone’s personal assets.
If a business is incorporated, then legally, the business and its assets are their own entity. If the business faces financial hardship and must consider insolvency options, the assets of the business are separate from the owner’s personal assets.
File for Business or Corporate Bankruptcy in Canada
If you are looking for more information about filing a corporate or business bankruptcy, there are a lot of difference between what applies in Canada and what applies in the United States.
If you are living in Canada and your debts are Canadian, it is best to seek guidance and information from Canadian sources like the OSB.
"Bankruptcy protection" is an American term, but generally speaking, it refers to when a company declares that it is insolvent and needs time to get their finances reorganized. During this time, the company needs protection from its creditors so that it can work out its difficulties and come up with a plan to get back on track.
Common Questions About Personal, Small Business and Corporate Bankruptcy in Canada
- How does bankruptcy affect divorce?
- What happens with government debts?
- Where can I go for non-profit bankruptcy help?
- Are there alternatives or other options to declaring bankruptcy for medical or other reasons?
- What are some of the guidelines, rules or laws for personal bankruptcy in Canada?
- Where can I get information about bankruptcy filings and records?
Contact Us for More Information About Personal Bankruptcy and the OSB About Business Bankruptcy
Now that you have some information about the different types of bankruptcy in Canada, personal and business, take time to explore other options and alternatives to bankruptcy. If you need help to make an informed decision about personal bankruptcy you can contact us today by phone at 1-888-527-8999, by email or chat will us online right now. Our appointments are free, confidential and don’t obligate you to anything. We're happy to help.
To find a trustee in your area to help you with a business bankruptcy, visit the OSB website for more information.