{"id":10394,"date":"2020-08-11T17:19:00","date_gmt":"2020-08-11T17:19:00","guid":{"rendered":"https:\/\/nomoredebts.org\/?page_id=10394"},"modified":"2025-01-15T04:30:09","modified_gmt":"2025-01-15T12:30:09","slug":"types-of-bankruptcy","status":"publish","type":"page","link":"https:\/\/nomoredebts.org\/debt-help\/bankruptcy\/types-of-bankruptcy","title":{"rendered":"Types of Bankruptcy Canada – Personal, Business & Corporate"},"content":{"rendered":"

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Types of Bankruptcy<\/p>\n

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Learn how bankruptcy works for individuals vs. businesses in Canada.<\/p>\n

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3 Types of Bankruptcies in Canada \u2013 Know Your Options
Personal and Small Business or Corporate<\/span><\/h1>\n

There are two main types of bankruptcy<\/strong> in Canada: one is personal<\/strong> and the other is business<\/strong>. Whether you’re considering filing bankruptcy as an individual or a business, you need to make an informed decision before pursuing this option. There’s a lot of information about bankruptcy<\/a> that can help you decide if you should file or not.<\/p>\n

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Personal Bankruptcy in Canada
Know How Bankruptcy Works and Get Info on Your Other Options<\/h2>\n

Before you file for personal bankruptcy<\/strong>, it\u2019s important that you get the facts needed to make an informed decision. There are also other options which may work for you.<\/p>\n

Filing for bankruptcy should always be a last resort. It costs money to go bankrupt and the process to be discharged from bankruptcy takes time. Even if you do end up choosing bankruptcy, why not do so knowing that it truly is your best option? Explore the many alternatives to bankruptcy to find out.<\/p>\n

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Small Business Bankruptcy in Canada
Same as Declaring Personal Bankruptcy<\/span><\/h2>\n

No one wants to declare business bankruptcy<\/strong> or expects to end up insolvent and unable to live up to their financial obligations. When a business is a sole proprietorship or partnership, its bankruptcy is essentially a personal bankruptcy. This is because the people are the business. Legally, the assets of the business are not separate from someone\u2019s personal assets.<\/p>\n

If a business is incorporated, then legally, the business and its assets are their own entity. If the business faces financial hardship and must consider insolvency options, the assets of the business are separate from the owner\u2019s personal assets. Business bankruptcies can be quite involved, so contact us<\/a> to get help finding a trustee<\/a> in your area who has experience with business bankruptcies<\/strong>.<\/p>\n

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File for Business or Corporate Bankruptcy in Canada<\/h2>\n

If you’re looking for more information about filing a corporate or business bankruptcy<\/strong>, there are a lot of difference between what applies in Canada and what applies in the United States.<\/p>\n

If you’re living in Canada and your debts are Canadian, it’s best to seek guidance and information from Canadian sources like the Office of the Superintendent of Bankruptcy<\/a>.<\/p>\n

What is Bankruptcy Protection?<\/h2>\n

“Bankruptcy protection” is an American term, but generally speaking, it refers to when a company declares that it’s insolvent and needs time to get its finances reorganized. During this time, the company needs protection from its creditors so that it can work out its difficulties and come up with a plan to get back on track.<\/p>\n

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Common Questions
About Personal, Small Business and Corporate Bankruptcy in Canada<\/h2>\n