Home > Blog > The One Scenario Where You Shouldn’t File for Corporate Bankruptcy

Corporate BankruptcyAt Morgan & Partners Inc., we’re committed to providing compassionate and professional services that can help make the process of filing for corporate bankruptcy less challenging. If you are a business owner in Barrie, Ontario who has exhausted all resources to keep up with your business expenses and want to claim corporate bankruptcy, call us today to find out if filing is the best option for you.

There is one scenario where corporate bankruptcy is not the best option: In Canada, if you are the sole proprietor of your business, your assets in the business are considered your personal assets. This means that when you claim corporate bankruptcy, you are personally liable for all losses.

Once you declare corporate bankruptcy as a sole proprietor, anything you own may be up for grabs. A licensed insolvency trustee has the legal power to take your property and assets in exchange for your debts. There are some considerations, such as your credit score, which will be negatively affected, and you will be required to report future income to your trustee.

If however, your business is not a sole proprietorship or a partnership, then by law, you can claim corporate bankruptcy and receive liability protection as your business is considered an independent legal entity.

With over 25 years of experience helping business owners navigate this process, we have identified the best strategies to allow you handle this process as easily as possible. Our corporate bankruptcy services are created to support you in reclaiming your financial future.

We are registered with the CAIRP and Industry Canada as accredited estate administrators who will work with you to first determine if bankruptcy is an option with our free initial consultation. Call us today to schedule your consultation.