Impact bankruptcy will have on a limited company

I have accumulated quite a bit of debt. It is mostly on my credit cards, but I also owe Canada Revenue a very sizable amount and it is due soon.

I had a period when I was dealing with a number of personal self defeating issues (i.e. drinking etc.). I have now dealt with all these issues and am confident they won`t be a problem again, but I now need to deal with to get a fresh start financiall.

I have an incorporated company that I am a partner in that barely pays for its own expenses and the same company owes a shareholders loan to me that is not likely to be paid back anytime soon, maybe over the next few years.will that company be protected if I file for personal bankruptcy because it is my only chance to live at this time if I am lucky…… thanks

Posted on Tuesday, April 28, 2009 | Filed under: Bankruptcy
 posted by Questions @ 6:02 am 1 Comment
1 Expert Comment:

 At May 1, 2009 | 6:16 am , Barton Goth, Trustee in Bankruptcy Said...

When you are in bankruptcy you are not able to be a director of a limited company. Now this is really a technical requirement and it is usually very easy to find a friend or relative who is willing to be temporarily listed as director.

Other than this, if there are not major assets in the company and therefore no real value to the shares, you will have to list these shares as a nil value asset and then the bankruptcy really won’t have any other impact on the company.

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