business bankruptcy

There are 4 of us who have started a business. The business was incorporated in 2007 and really has been operating for the last 3 months. The business is failing and we are looking at filing bankruptcy. All 4 of us are listed as directors and were wondering if this bankruptcy will effect our personal credit rating at all?

Posted on Monday, October 12, 2009 | Filed under: Bankruptcy
 posted by Questions @ 8:09 pm 1 Comment
1 Expert Comment:

 At October 14, 2009 | 9:43 pm , Bart Goth, Trustee in Bankruptcy Said...

This will really depend on the type of debts owing withing the business as certain debts will survive the corporate entity. If you have have anything owing to the government for payroll remittances, GST, have any outstanding wages owed to employees or have any debts where you have signed personal guarantees then a corporate bankruptcy will not be of any assistance as these types of debts survive the corporate entity and as directors you are personally liable for.

This is why it is important for you to review the details of the corporation with a licensed trustee to see if the filing of a bankruptcy is necessary, or will even benefit you.

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