Bankruptcy – Business structures
If you wish to continue in business, you will be considered a new entity beginning on the day after the assignment into bankruptcy. You will require a new business number (BN) for your new CRA accounts.
When one individual in a partnership made up of two individuals declares bankruptcy, the partnership can no longer exist.
When a partnership includes more than two individuals and one declares personal bankruptcy, the partnership may continue to operate, further to an agreement between parties involved. For example, a law firm of 100 partners may have one partner that has declared personal bankruptcy and the law firm is not liable for the partner's personal debts. The law firm may continue in business despite the partner's personal bankruptcy.
In most cases, unless a bankrupt corporation pays all debts owed at the time of bankruptcy, the company ceases to exist.
If you wish to dissolve an incorporated business or start a new one, you will have to contact the government body that governs the affairs of your corporation.
For information on how bankruptcy affects your GST/HST accounts, go to Closing a GST/HST account.
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