If you declare personal bankruptcy and you are a co-owner of a company that has been in business less than 1 year, how does it affect the business?
Thanks,
Bankruptcy Alberta: Free Information about Bankruptcy in Alberta
If you declare personal bankruptcy and you are a co-owner of a company that has been in business less than 1 year, how does it affect the business?
Thanks,
This depends on how the business has been set up, the types of assets of the business, and the types of loans in the business.
Normally speaking what must happen is the business must be valued and 50% of the value of the business (the half that relates to you) must be realized on by the bankruptcy.Now this could be pretty simple. For instance, if you have more debts in the business than assets, nothing must be realized, but the more value the business has the more that you would be allocated to the bankruptcy estate.