My name is Ira Smith, president of Ira Smith Trustee & Receiver Inc.
first, the Ira Smith Team hopes that you and your entire family continue to remain
safe, healthy and secure during this ongoing COVID-19 pandemic.
Ira Smith Trustee & Receiver Inc.
Is fully operational.
Both Brandon Smith and myself are available to speak with you at any time.
We are holding all meetings by telephone or video chat.
So if you have any questions at all about this Brandon's Blog or anything else
at all shoot us a message, give us a phone call.
We would love to hear from you.
Today's Brandon's Blog is titled Licensed insolvency trustee
for Bankruptcy Simple Steps On How To Avoid Bankruptcy and Save Your Business.
As you might recall in Brandon's last blog, he spoke about
causes for business insolvency, why businesses run into financial trouble.
And he divided it up between the three common forms of business
structure, sole proprietorship, partnership
and a corporation.
In this Brandon's Blog below,
Brandon discusses how you can use the restructuring provisions of Canadian law
and which specific restructuring
provisions are available for each type of business.
So I hope you can watch until the end
of this video because I know you will get value from it.
In this blog, Brandon first gives a recap
of reasons why businesses get into financial trouble, why they go bankrupt.
And keep in mind, bankruptcy is the very, very last resort.
After giving a brief refresher,
Brandon speaks about the role of a debtor in bankruptcy or insolvency.
He goes through the three types
of business structures and discusses what kind of restructuring assistance
could be available, and what each one means.
He discusses that in a proprietorship or partnership
it's really the individuals.
There's no separate legal business entity.
So it's the actual individual people
who are at risk not only for the business liabilities or
business assets, but for all their assets and all their liabilities.
In a corporation,
the shareholders, the owners of the business are insulated
because the corporation is a separate legal entity.
Brandon then discusses options
for settling with creditors and debt collectors without bankruptcy.
In a proprietorship or partnership,
the two restructuring provisions available.
Because we're talking about individuals is either a consumer proposal
or not, the streamlined version, consumer proposal, but the
full blown Division I proposal. Both of them are government approved debt
settlement programs, and rather than filling up this blog
with step by step how each one works, Brandon provides links
to other blogs that he has written, which provides that detail, if you wish to get it.
He then speaks about
asking creditors to help you to avoid the bankruptcy of the corporation.
And again, this is under a financial restructuring or
what you might hear in the media as being called bankruptcy protection
and the two tools available to a corporation to restructure; either
the Division I proposal under the Bankruptcy and Insolvency Act
or for corporations that owe five million dollars or more
a Plan of Arrangement through the Companies' Creditors Arrangement Act.
And again, Brandon provides more information and specific links so you
can get the finer details from other blogs that he has written.
And then Brandon goes on to what is the very last option.
When to consider an assignment for the benefit of creditors actually
going into bankruptcy, either as an individual proprietor..
partners of a business or for a company to file for bankruptcy.
So I hope you can take the time to read the entire blog,
because I know you will find it very interesting and there's a lot more detail
than the time I have in this video to go over with you.
Again, the Ira Smith Team hopes that you and your entire family remain safe,
healthy and secure during this ongoing coronavirus pandemic.
Ira Smith Trustee & Receiver Inc.
Is fully operational.
Both Brandon Smith and myself
are available to meet with you at any time, either by telephone or video chat.
So if you have any questions at all
about this Brandon's Blog or anything else at all, shoot us a message.
Give us a phone call.
We would love to speak with you.