Filing for bankruptcy may not be the only option. The insolvency and restructuring professionals at McEown + Associates Ltd. are available for consultation to review your financial circumstance and provide you with an unbiased solution best suited for your business needs. Bankruptcy is the option of last resort after all other alternative restructuring options have been exhausted or determined to be unsuitable.
Bankruptcy is a legal status. A person or corporation may become bankrupt either voluntarily (a company assigning themselves into bankruptcy) or involuntarily (petitioned into bankruptcy by creditors or deemed bankrupt due resulting from a failed/unsuccessful Division I Proposal to creditors).
In a bankruptcy, all assets of the bankrupt (whether an individual or a corporation) vests in the Licensed Insolvency Trustee (“LIT”). The LIT has the authority take possession of and sell all the assets of the bankrupt and distribute the net proceeds to the proven creditors in the same manner and according to the priority of their claims, among all creditors who are similarly situated.
A bankrupt corporation will only obtain a discharge from bankruptcy if the debts are paid in full.
For further information, call us at (604) 558-8020 to discuss.