Click here to submit your question or Go back to Home Page

Author:		EH
Date:		August 12, 1999
Question:		I have a samll company (not Limited) and can no longer afford to meet my personal bills. In fact I even have had to give up my apartment and live with friends to make the necessary payments. This, of course, cannot go on. My question is: You say that you have to list all your debts but I only want to do proposals on the personal part of my debt. Do the other creditors have to know that I am doing propsoals personally and if the three creditors do not accept the proposals can they put me into bankruptcy, and if they do, could they force me to shut down completely?
From:		Shane Brenneis, Collins Barrow Limited
Date:		August 9, 1999
Answer:		A company that is not limited is usually a proprietorship and is an extension of yourself. Therefore, the creditors in the company have to be treated the same as your personal ones. If your debts(not including your personal residence mortgage) are less than $75,000 you can file a consumer proposal. 51% of the creditors must approve the proposal before it can go ahead but there is no automatic bankruptcy. If your proposal fails you must then decide your next course of action. You should contact a Trustee in your area by looking in the yellow pages under "Bankruptcy" to obtain a free assessment of your financial situation. If you have any further questions or want to come in for a free assessment to our office, please call or email me using the information below. Shane Brenneis phone: (403) 298-1575 sbrenneis@collinsbarrow.com