Can I operate a business while I am bankrupt?

Can I operate a business while I am bankrupt?

That depends on what type of business you are operating. If you are self-employed in Ontario and your business is a sole proprietorship, you can operate as usual. Any business-related debts in your bankruptcy are also personal debts, so suppliers that were included in your bankruptcy may be cautious about extending credit to you while in bankruptcy. You may need to re-negotiate payment terms with them.

If your business is a corporation in Ontario, you must first take steps to remove yourself as a director, as an undischarged bankrupt cannot be a director of a corporation in Ontario.  Your suppliers would not necessarily be aware of your bankruptcy, but you should not sign personally for any credit, business or otherwise, while undischarged.  Otherwise, you may run your business as usual.

If you like an evaluation please fill out the evaluation form. Contact Rumanek and Company or the Office of the Superintendent for more information.