Operating a business and bankruptcy

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