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If you find that you’re struggling or even unable to pay your goods and services suppliers, your corporation may become insolvent. It’s not unusual for a corporation to face insolvency for a prolonged time before filing for bankruptcy or making a proposal to creditors. Filing for bankruptcy will eliminate your company debts if you are unable to pay them, but this should be considered a last resort.

Grant Thornton Limited can help your corporation with its financial issues whether that entails guiding you through a proposal or corporate bankruptcy. Vancouver and the surrounding areas can turn to Grant Thornton Limited for sound advice and service. Contact one of our offices today.

Types of Bankruptcy 

According to the Canada Revenue Agency, there are three different types of bankruptcy:

  • Voluntary Assignment: You voluntarily assign all of your assets for the general benefit of your creditors
  • Involuntary Assignment: A creditor files a petition in a provincial court to seize your assets
  • Deemed Bankruptcy: When you start the insolvency process and fail to file a Division I proposal or fail to adhere to the provisions provided within the proposal after it has been filed

When you choose to file for bankruptcy on your own, your licensed insolvency trustee will help you through the process in an easy-to-understand manner that will be as painless as possible.

When to File for Bankruptcy in Vancouver

There are other options you should consider before filing for bankruptcy. However, Vancouver corporations may want to choose bankruptcy when:

  • Your business fails
  • You are unable to pay your debts

When you decide that filing for bankruptcy is your best option, you’ll need the help of a licensed insolvency trustee to help you through the process. Your trustee will work with you to fill out all necessary paperwork to declare bankruptcy. Vancouver and Victoria companies can rely on the team from Abakhan & Associates, now part of Grant Thornton Limited, to handle all communication with your creditors as well.

Dealing with Bankruptcy in Victoria

Filing for bankruptcy in Prince George, Victoria and the surrounding areas will offer you benefits, but it has its downfalls as well. After your corporation becomes bankrupt, you cannot be held personally liable for the debts of your business. However, it will affect your credit rating and make it harder for you to get loans in the future. Once you have declared bankruptcy:

  • You will stop making payments to unsecured creditors
  • Garnishments against your salary will stop
  • Lawsuits against you by your creditors will stop

When you file for bankruptcy, your licensed insolvency trustee will liquidate the assets of your business in order to eliminate your debts and give you a chance at starting over. It won’t be a completely fresh start, though. Your credit score is affected and you are required to perform certain duties.

After Filing for Bankruptcy in Surrey & Area

Once you have formally filed for bankruptcy there are several steps that you and your trustee must complete:

  • Sell assets to help repay debts
  • Attend two financial counselling sessions
  • Maintain a reasonable standard of living with an allotted amount of monthly income
  • Report your income to your trustee each month

When your corporation faces insolvency, you have many options to fix the situation. If you think that filing for bankruptcy in Vancouver or the surrounding areas is your best option, contact the offices of Grant Thornton Limited. Our licensed insolvency trustees will go over your financial situation with you to determine the best course of action.