Commercial bankruptcy
Free yourself from your company’s financial burden!
We realize that commercial bankruptcy is never an easy process. However, it allows you to break free from your company’s accumulated debts. There are a number of steps involved in commercial bankruptcy. Therefore, it’s best to call on professionals to ensure the process runs smoothly. Our experts have in-depth knowledge of the commercial bankruptcy process. You’re in good hands with our professionals!
When should you consider commercial bankruptcy?
Commercial bankruptcy may be considered in the following situations:
- Your organization can no longer meet its financial obligations and payment deadlines.
- Its sales have significantly decreased, to the extent that its revenue is no longer sufficient to cover expenditures and ongoing costs.
- It is unable to pay its debts and has insufficient assets.
- Your creditors refuse to negotiate or accept a payment agreement.
- Your company is no longer operational or has no assets, but still has debts.
- Bankruptcy is the only solution to terminate its financial obligations.
What is the process for commercial bankruptcy?
There are three primary stages in a commercial bankruptcy.
- Consulting a Licensed Insolvency Trustee (LIT) : During your first free and confidential meeting, we’ll analyze your situation and propose the best solution for you. Naturally, since other options may be better suited to your company, we’ll explore whether a recovery plan or proposal to creditors may be an alternative to commercial bankruptcy.
- Preparing a bankruptcy file : To the extent possible, you’ll provide a series of documents such as your company’s financial statements and documentation showing its revenue, assets, contracts, debts and creditors, for example.
- Filing documents : Once your documents have been signed, we’ll submit your file to the Office of the Superintendent of Bankruptcy. At this point, your commercial bankruptcy is official and you can breathe a sigh of relief. We’ll take care of the rest. We’ll advise your creditors, which immediately puts an end to ongoing actions or proceedings involving your business.
What are the advantages of commercial bankruptcy?
Even though commercial bankruptcy is often a difficult decision, it offers the following advantages:
- It allows you to clear most of your debts.
- It offers protection from your creditors since all ongoing actions or proceedings involving your business are suspended. Furthermore, you’re no longer required to respond to creditors as an administrator or shareholder. The Bankruptcy Trustee will be the only point of contact with them.
Commercial bankruptcy is a structured process with a legal framework defined by the Bankruptcy and Insolvency Act that: - Helps you avoid future costs (accounting and tax costs, for example).
- Helps you avoid de facto liquidation and being personally liable for assessments and debts.
- Allows you to put the Wage Earner Protection Program (WEPP) in place.
- Gives you entitlement to a business investment loss (BIL) as a shareholder.
- Most of all, relieves your stress and restores your peace of mind.
How can a Licensed Insolvency Trustee help you with a commercial bankruptcy?
- In Canada, only Licensed Insolvency Trustees are authorized by the government to file for commercial bankruptcy. They’ll guide you through each step of the process and ensure that it is legally compliant.
- Before proposing a commercial bankruptcy, they’ll review other solutions to help you make an informed decision.
- An LIT isn’t just a consultant. They’re a trusted partner with the expertise required to support you through difficult times.
Other solutions that can help
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Recovery plan
There are many reasons behind financial difficulties. Together, we’ll analyze the situation and identify your company’s strengths and weaknesses before proposing recovery measures to get it back on track.
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Voluntary liquidation
Business dissolution is a complex process that involves following specific rules. We can develop tailored strategies to maximize the value of your company’s assets while respecting your obligations towards your creditors!
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Proposal to creditors
Our experts negotiate an agreement with your creditors on your behalf. As a result, your payments will be reduced and your debts spread out over a longer period. The objective is to give your business a second chance!