How can I still operate my business if I am bankrupt?
It depends on the circumstances.
If you operate and earn a living as a proprietorship, as opposed to a limited company, the vast majority of proprietors continue operating after bankruptcy. However there may be a requirement to disclose the bankruptcy in certain circumstances.
If you have been earning a living through an incorporated business, an individual bankrupt is precluded from acting as a director of an incorporated company pursuant to applicable provincial or federal law. As well, a bankrupt’s shares in the incorporated company are not exempt property and those shares vest in the Trustee upon filing for bankruptcy. Sometimes these issues can be resolved such that a bankrupt can continue operating the same corporation.
Ask a Trustee
If you have something you’d like to Ask a Trustee, use this form to submit your question.
And follow @askatrustee on Twitter