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Alger Bankruptcy Services

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Hi, So I have been really weighing out my options to claim bankruptcy. I am currently registered for debt recovery with Money Mentors, however things are not looking good. My husband cannot get work, we have a 1.6 month old, and I am working/owning a small salon that is not doing well. Can you please help answer my questions before I decide how and where I move forward. 1 - Will my husbands credit be affected if I claim bankruptcy? -will he be responsible to pay those debts? 2 - Can I move out of the country if I claim? 3 - What are my obligations if I claim? 4 - Can I also pull my corporate debts from the incorporation* I dissolved into my personal debts to bankrupt? The salon I am part owner originally was incorporated under a different corporate name with myself owning 100%. Recently I brought on a partner to help levitate the pressures of the salon. When I brought on my partner we made it 50/50 ownership and we created a new incorporation. Since dissolving I have been closing everything and finding currently I owe over 24,000$ just in payroll as I could not afford to pay anything. I have had a whirl wind of bad hires (apprentices are small business destroyers). My year end is currently being done for the original incorporation I had 100% ownership of, I am sure I am owed money which it could make it a little less. 5 - If I claim bankruptcy can they go after the new incorporation? or my new partner? 6 - I was also considering giving the salon to my new partner 100% in exchange the salon pays the rest of my schooling and I work there until I am done school as strictly an employee only. -can I do this? KT



Grant Thornton Alger Inc.



Dec 16, 2013



Hi KT I'm sorry to hear that things aren't looking good financially for your family. My answers to your questions are as follows: 1.Your husband is not responsible to pay your debts unless he is a co-borrower. The fact you are married does not make him responsible for your debts if you claim bankruptcy. 2. Yes. You can leave Canada but you will still have to attend to you duties in bankruptcy, such as filing statements monthly regarding your income and your expenses. 3.There are specific duties you are reqiored to perform after the signing of bankruptcy including attending 2 counselling sessions focussed on money management, filing a monthly summary of your income and expenses and providing information to your Trustee so your income tax returns for the year of your bankruptcy can be filed. You are also required to make payments to the Trustee based upon your earnings. 4. If you are personally liable for the debts of any company you incrporated, you can include them in your bankruptcy. This inclueds GST, source deductions and employee wages if you were a director of the corporation. 5. If your partner was a director of the new incorporated company, he/she is liable for GST, source deductions and employee wages, together with any debts of the company that he/she may have been a co-borrower on or personally guaranteed. 6. If there is any value in your shares in the company, they would vest ( ie legally belong) to the Trustee. You can be employed by your partner however you should be paid the market rate for your services. Please call me to set up a no charge consultation to discuss your questions and concerns in more detail. Thanks for the question

Marie Kozlowski
T 403-296-3082


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