Alberta Bankruptcy

Author:

Anonymous

Question:

I need to file personal bankruptcy. I wanted to know if I can do the following. Open a business that where I am an employee and pay myself each month but also own the business in a company name. From there I file personal bankruptcy. Would this affect the business? Or just my personal finance. That makes me personally bankrupt but the business still makes money. I understand it has to be a ltd company. Can I do this?

From:

Alger & Associates Inc.

Date:

Dec 19, 2011

Answer:

You cannot be a director in a limited liability corporation while you are in bankruptcy. Any income that you flow through a business while in bankruptcy must be verified to the Trustee and the income must be calculated for payment purposes. If you channel income through another person's company then you must be paid in accordance with industry standards.

Karen Rideout
phone: (403) 296-2973
krideout@alger.ca