Business bankruptcy in Toronto
I am a partner in an incorporated business, if the business declares bankruptcy, will I have to declare personal bankruptcy as well?
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on Thursday, May 11th, 2006 at 11:38 am by Questions and is filed under Uncategorized.
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Not necessarily. Your incorporated business is a separate legal entity, so the debts of the business are not automatically the debts of the shareholders. However, if you have personally guaranteed any of the business debts, your personal financial situation may be in jeopardy; if that’s the case, I suggest you contact a Toronto bankruptcy trustee for a detailed review of your situation.