Corporate business can’t afford trustee, creditors seeking money?
My husband had a business partner who resigned as a director of our corporate business and have left my husband as the only director. The landlord locked the doors and liquidated everything. Customers did not pay or claimed deductions and did not pay in full. There is no cash, no assets, there is nothing available. He did not get any benefit and is out a lot of money too. Vendors are filing suits and hunting us down to try to collect. They even think that I am responsible as his wife to pay up. I am getting sick of this, but he met a trustee and they want $15,000 retainer to start bankruptcy procedures. We just don’t have that kind of money. What do we do?
I think the first thing your husband should do is determine his legal liability so he knows what he is personally responsible for.
For example, he is only personally responsible for corporate, unsecured debt that he personally guaranteed.
An insolvency lawyer can help him determine his liability for the business debts:
– Earl Sands, Licensed Insolvency Trustee BankruptcyCanada.com