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Author:		L.L.
Date:		May 5, 1999
Question:		I have an incorporated business which is heading for closure. Part of the monies the business owes is in the form of a personally guarenteed loan-approx 30,000.00. How will declaring business bankruptcy affect the loan and my personal assets re-spousal RRSPs and part ownership of home? I would like to pay the money back with assests from the business but will not be able to repay the loan completely.
From:		Shane Brenneis, Collins Barrow Limited
Date:		May 7, 1999
Answer:		If your business closes down or in the end files bankruptcy, any portion of the loan that you guaranteed but was not paid by the company becomes your responsibility. Also, if you are a director, you can be held responsible for any outstanding payroll, GST and source deductions. With respect to your personal residence, it depends what province you are in, but you may be allowed to keep a certain amount of equity. In Alberta you are allowed $40,000. With respect to the spousal RRSP's it will depend when they were set up and how recently funds were contributed. You will need to talk to a Trustee so they can give you an assessment regarding your financial situation. If you have any further questions or want to come in for a free assessment, please call or email me using the information below. Shane Brenneis (403) 298-1575 sbrenneis@collinsbarrow.com