Hello.
I have an incorporated company and need to file for bankruptcy.
If I were to file for personal bankruptcy how would that affect my standing as the soul director of my incorporated business.
I have heard that you cannot be a signing officer of a corporation if you are in bankruptcy proceedings.
Is this true?
Are there any of these types of restrictions, and if so how long would thay last?
Thanks!
posted by Questions @ 2:27 pm
At June 12, 2008 |
6:59 am
, Barton Goth GCO Bankruptcy Trustees Said...
While you are in bankruptcy you are not allowed to be a director of a limited company. So this can be a challenge when you own an incorporated company.
The other thing you will find is that the shares you own are an asset that vest’s in your trustee when you file for bankruptcy. Meaning that the trustee must value these shares and if there is any value to them they must realize on that value. This could mean the liquidation of the assets of the incorporated company or perhaps you could arrange to simply buy the shares back from the trustee for the equivallent value as the assets of the business would have resulted in. Either way, this is somehting you should contact a trustee about directoy to determine if it will be an issue or not.
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