Bankruptcy Question & Answer Forum - Canada

Author:		Paula
Date:		September 10, 2005
Question:		My husband is in the construction industry and has recently been asked by the company he works for if he would become incorporated. We have been discussing entering into bankruptcy. His corporation won't be making a profit, it will just be used to pay 2 guys he is training and his business expenses will come from there and not our bank account. Will making this change affect our going into bankruptcy? Our financial situation won't change it will just be divided between personal and business. And all the debt we have would not change.
From:		Bruce, Alger & Associates Inc.
Date:		September 12, 2005
Answer:		If the corporation has no value, the shares could be retained by your husband and he could continue to operate as before except that he is not allowed to be a director of a corporation while in bankruptcy. Bruce Alger phone: (403) 296-2970 balger@alger.ca