Question: I have a incorporated company with myself as the only share-holder. I have been struggling for 3 years to bring my debt done but am making no headway, I think my debt is too high for a consumer proposal.
I owe the following: 90,000 to biz line of credit, $15,000 personal line of credit for company purchases.
I have business purchases on personal credit cards equal to approx. $30,000 does that mean I have to file personal bankruptcy.
I have a leased car for $400 a month…will I lose the car?
I lease a home with personal property like furnishings valued at less than $20000.
I do not owe any of my supliers any money and am current…will they have to be notified if I file if I don’t owe them anything?
I owe about $1500 to CPP but no other taxes are owing for pst or corp. taxes.
I have a partner who came on board 3 years ago and has been drowning in debt also, using his cards to draw against for payroll for himself as we tried to dig the company out….how will filing effet him?
Sorry for all the questions and hope you can answer it is a bit of a mess. Last one…what are the fees involved for filing?
Thanks in advance for your time.
Answer: You are asking many complicated questions, which would take about a one hour consultation to answer completely, so I strongly suggest that you contact a licensed trustee immediately to work through the options.
The first issue will be to determine which corporate debts you are personally liable for. If you have not personally guaranteed them, you could close the corporation and walk away; limited liability is one of the main reasons for incorporating in the first place.
If your personal debts are more than you can manage then yes, bankruptcy may be an option. You are correct that your debts may be too large to file a consumer proposal, but it is possible to file a Division 1 proposal if your debts are large. Your trustee will explain these options to you as well.
It is possible to keep a leased car when you are bankrupt, but again the specific answer depends on a number of factors, so we strongly recommend that you contact a licensed trustee immediately to arrange a free consultation to work through your options.