In Toronto, business bankruptcy services provide solutions to companies that are undergoing crippling debt and repayment issues and are considering filing for bankruptcy as a final option. These services are offered by a Licensed Bankruptcy Trustee who has extensive knowledge and experience in assisting companies through Division 1 Proposals and Bankruptcies under the Bankruptcy and Insolvency Act of Canada.
Some of the corporate bankruptcy services that a licensed Insolvency Trustee can offer may include:
• Examining your current debt problems and their causes
• Finding possible solutions and the implications of each
• Providing assistance in the preparation of Division I Proposals
• Filling of Proposals in the Office of the Superintendent of Bankruptcy
• Representing the insolvent company as intermediary between their creditors
• Managing company reorganizations
• Developing and carrying out restructuring activities
• Business consulting
• Cash Flow Management
• Collection Agency consulting
• Receivership
• Bankruptcy petition
The process involved in a corporate bankruptcy can differ greatly from one business to another, depending on the legal structure of the business. Under the Bankruptcy and Insolvency Act of Canada, partnerships and sole proprietorships are dealt with under personal bankruptcy, while incorporated companies or corporations may apply for bankruptcy as a business.
When the legal structure of a business is organized as a partnership or sole proprietorship, the setup does not legally separate business and personal assets/liabilities. This means that the business assets and debts are owned by the individuals that operate the business and all assets will be used to settle all debts in the same process as that of personal bankruptcy.
When the business is incorporated then the business is considered a separate entity from each of the individual owners. This means that the assets and debts of the business are legally separate from the personal assets and debts of the business owners. Therefore, a business bankruptcy can be filed without affecting the personal assets of the business owners and only the assets of the business will be sold to pay off creditors.
Business bankruptcies can be very complex. There are many factors to consider, such as the structure of the business and the types of creditors that the business is dealing with. It can also be very costly and can even create more problems than solutions for many small business owners.
It’s important to seek the advice of a professional business bankruptcy trustee to help you understand all the other options available and how each option can potentially affect you and your partners as well as your families. A trustee is licensed by the government of Canada to work with bankrupt companies, their creditors, the Office of the Superintendent of Bankruptcy, and the Courts to ensure an efficient and fair distribution of assets among creditors.
In a corporate bankruptcy process, the government will retain a bankrupt company’s assets and dispose of it quickly by distributing it as fairly as possible among the company’s creditors. The first step that the trustee will take is do a thorough evaluation of the business finances, assets, income and debts. From there, he will present you with all the options that the business has for managing the credit crisis. Once bankruptcy is decided as the best solution, he will then file the necessary documents to start liquidating the company's assets and to negotiate with your creditors. A bankruptcy trustee will be a fair and reliable ally from the beginning through the end until your business is released from its debts.
Business bankruptcy services in Toronto are not only beneficial to companies filing for bankruptcy in order to obtain a fresh start. These services are also useful to help diagnose financial problems early and increase the opportunity to find other options to restructure the debt that can be just as effective to get the business back on track.
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