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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Business bankruptcy in Toronto
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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.
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