Corporate bankruptcy proceedings are expensive. Corporations without assets and those not operating should only file an assignment in bankruptcy if there is a clear understanding of what benefit(s) are to be gained.
Generally ongoing corporate businesses in financial difficulty would consider a variety of options including proposals under Division I of the Bankruptcy and Insolvency Act.
Many factors must be considered. Where there are multiple owners of a corporation with different personal exposures, the owners’ interest may be in conflict. As the movie said: “It’s Complicated”.
If you’re thinking about filing a Corporate Bankruptcy give us a call to book a free consultation at one of our three locations in Mississauga, Brampton or Grimsby