My husband and I are separated. He has recently filed bankruptcy and I guess that I too will have to do the same because I could not carry the payments by myself. I am the president of an incorporated new business for the last year. Right now there is a loan on the business of which I have signed a personal guarantee. The assets of the business would not be much higher than the loan, maybe a couple thousand dollars. Everything ever due to be paid in this business is always paid on time, no arrears.I have been told 2 options and I am wondering if they are correct. One was to transfer the assets by a bill of sale to a friend/family and they would operate the business under another name for 9 months. What would happen to my loan then? The other was to just change director to someone other than myself for 9 months and have the business operate as usual no other changes. What is the best way to go?? One more question, I co own a vehicle with a family member so if the value is $9000.00 what happens with that?

You have to be very careful about transferring assets as the Act is very specific on transfer of assets and proceeds.

The matter you have described can be very complicated and it would be best if you talked to a Trustee in person.

Ann Clarke
phone: (403) 296-2972
aclarke@moneyhelp.ca