Bankruptcy Question & Answer Forum - Canada

Author:		Randy
Date:		October 10, 2005
Question:		I must file for bankruptcy as I signed many personal gaurantees for business related loans. My business was forced into bankrupcty almost 1 year ago and the banks are now attempting to collect. As well, I have significant Rev Can debt but also have a very large business investment loss. My question is this: Can I start a new company before or while I am in bankruptcy, and can I retain ownership in that new company? Also, if the new company is developing new business but has not reported a profit, do I need to make payments in bankruptcy on "potential future profits"? Thanks.
From:		Bruce, Alger & Associates Inc.
Date:		October 11, 2005
Answer:		Randy, yes, you can start a business while in bankruptcy but you must disclose that you are an undischarged bankrupt. You will not need to make payments on "potential future profits" Bruce Alger phone: (403) 296-2970 balger@alger.ca