What Can a Licensed Insolvency Trustee Do for Your Business?

What Can a Licensed Insolvency Trustee Do for Your Business?

As the owner of a struggling business, do you know where to turn for help and guidance when the bills start piling up? Who do you talk to when you can’t keep up your payments? Coming to terms with one’s own financial difficulties is a major step towards debt recovery, but that doesn’t mean it’s easy. 

A business that isn’t drawing in the revenue it needs to sustain itself affects many lives. As the owner, you’ve got to take responsibility (along with and co-owners or investors) for the situation. There are the employees, their families, stakeholders, your vendors, and your clients to consider. Without expert knowledge of your financial options, it may seem like bankruptcy is the only choice.

Where to Find Help

When your business is facing insolvency, it’s time to meet with an empathetic and knowledgeable Licensed Insolvency Trustee (known formerly as a bankruptcy trustee). In just one consultation with a bankruptcy trustee, you can get more information you can use to make the right decision about your next steps. 

When Are You Insolvent?

A business becomes officially insolvent when its debts become larger than its assets. In practical terms, the insolvency process only begins when a business cannot keep up with its financial obligations. 

Insolvency can happen for all sorts of reasons. There may have been health issues, poor cash management, an increase in expenses, or external economic factors. 

Corporate Insolvency

Bankruptcy trustees are experienced in dealing with clients of varying backgrounds and different financial difficulties. While you might be considering filing for bankruptcy, there could be other options available to you.

The trustees at David Sklar and Associates are well-equipped to explore the possible options for business clients considering bankruptcy. These bankruptcy trustees are licensed under the Bankruptcy and Insolvency Act to carry out the procedures for debt relief. They offer the expertise to guide your small- to mid-sized company through a Division 1 Proposal or bankruptcy. 

Corporate or Individual?

Businesses take many different shapes and forms. They can be made up of huge teams or just one person who works as a sole proprietor. As far as corporate debt relief is concerned, your business can file for bankruptcy or for a Division 1 Proposal (the corporate version of what is known to individuals as a consumer proposal). Sole proprietors must file as an individual.

Division 1 Proposal

Division 1 proposals allow a debtor who cannot pay back their debt in full to agree to pay back a portion of the debt in regular instalments. In some cases, individuals who have over $250,000 in debt can file for a Division 1 proposal. You don’t know your options unless you consult with a qualified bankruptcy trustee. Arrange for a meeting today and take the first step in settling your corporate debts.

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