Filing for bankruptcy isn’t an easy decision to make. You may be concerned that you’ll lose everything you’ve worked so hard to achieve. Plus, it seems overwhelming to figure out how to get started and determine if this is the best choice.

The purpose of bankruptcy for a corporation or individual is to pursue relief from debt they cannot pay. Regardless of the type of bankruptcy declared, the person declaring it must be a Canadian resident, owe more than $1000 to their creditors, and have no way to pay their bills.

There are three main types of bankruptcy in Canada:

• Personal 
• Small business
• Corporate

We’ll explain each of these and how Charles Advisory Services, conveniently located in Etobicoke, can help you with manage bankruptcy. 

How does personal bankruptcy work?

Personal bankruptcy is the most frequent type of bankruptcy declared in Canada. There are a variety of reasons that Canadians decide to file for personal bankruptcy. These are the most common ones:

• You can no longer work or earn an income sufficient to pay off your debts. 
• You can’t decrease the amount of debt you have or borrow any more money.
• You don’t have enough cash on hand to pay even for basic needs, like groceries.

It’s essential to work with a licensed trustee when declaring personal bankruptcy. They can ensure that you file for the right kind of bankruptcy, and explain how trustee fees work, what assets will or will not be seized, and what type of discharge you can eventually expect.

How does small business bankruptcy work?

Small business bankruptcy is somewhat similar to personal bankruptcy. With small business bankruptcy, any business assets and debts are legally viewed as the owner’s assets and debts. 

You can’t file for small business bankruptcy if your business is incorporated. 

Once you’ve arranged for a trustee to file for small business bankruptcy, a "stay of proceedings" will go into effect. Now unsecured creditors can no longer start or continue legal action to recover debts. 

This is why it’s important not to wait too long to file bankruptcy, as you could be struggling to pay off debt when you’re not capable of doing so.

How does corporate bankruptcy work?

Etobicoke corporate bankruptcy is far more complicated than either personal bankruptcy or small business bankruptcy. You should know the following about Etobicoke corporate bankruptcy:

• You must find a Trustee who is familiar with a corporate bankruptcy filing.
• A corporation is an independent legal entity, so you will be protected from liability and not have to forfeit any of your assets (unless you have put them up as collateral or security for any of your business’ debts).
• If you cannot pay your taxes, the Canada Revenue Agency (CRA) prioritizes all other secured creditors when you file for Etobicoke corporate bankruptcy.

The process for Etobicoke corporate bankruptcy does have some things in common with personal or small business bankruptcy. All of your company’s assets will be handed over to the Trustee during bankruptcy. The Trustee will then sell the assets and distribute all funds to the creditors.

How can Charles Advisory Services help me with Etobicoke corporate bankruptcy?

Before filing for corporate bankruptcy, you need to be clear on what corporate bankruptcy is. It’s a legal debt proceeding that you should only undertake if you cannot pay your debts.

If this sounds like you, we know you’re likely feeling overwhelmed and scared about your future. But you’re in good hands with Charles Advisory Services if you’re considering an Etobicoke corporate bankruptcy.

We have extensive experience helping guide Etobicoke businesses through the complicated process of corporate bankruptcy. Our primary goal is to help companies to end their operations quickly and efficiently.

If you need to declare corporate bankruptcy in Etobicoke, this is what you need to know about using a Trustee:

1. Licensed Insolvency Trustees are highly trained debt advisors who must pass a detailed bankruptcy and law course before they are licensed. 
2. The Trustee can help advise you on the best course of action for you to take - whether that’s filing for bankruptcy or pursuing a different debt relief option.
3. It isn’t expensive to hire a Trustee, and it’s well worth the money as filing for bankruptcy incorrectly could drag out your case and cost you additional fees.
4. Trustees are always working on your behalf - not on behalf of your creditors.

We’re here at Charles Advisory Services to walk you through the complicated process of filing for Etobicoke corporate bankruptcy. We’ll take the time to guide you through the Etobicoke 

corporate bankruptcy process and ensure you file all necessary paperwork on time.

Our goal is to provide our clients with the right debt solution for their company. We can answer your most pressing questions about declaring bankruptcy - for example, whether or not your business retirement plans are protected during bankruptcy.

The Takeaway

Filing for bankruptcy isn’t an action anyone takes lightly. If you think you may need to file for bankruptcy for your business, the first thing you need to know is there are three different kinds of bankruptcy:

• Personal bankruptcy, which is for individuals who cannot pay off all the debt they’ve accumulated.
• Small business bankruptcy, which is for unincorporated business.
• Corporate bankruptcy, which is for incorporated businesses.

When you come to Charles Advisory Services to learn about Etobicoke corporate bankruptcy, we’ll take the time to learn about your situation and educate you on what options you have available when it comes to resolving your debts.

You’re not alone if you need to file for Etobicoke corporate bankruptcy - we can help!

Learn More About Etobicoke Corporate Bankruptcy

It can be hard to take the first step towards filing for corporate bankruptcy. But the sooner you talk to a licensed Trustee about your concerns, the sooner you can make a plan and start looking towards a brighter future. 

To learn more about Etobicoke corporate bankruptcy or any other debt management solutions we offer, call us at 416-486-9660 or contact us online.