Sometimes the financial situation of your business has deteriorated so badly that it is not possible to offer a viable proposal to your corporate creditors. Creditors may be instituting legal proceedings and taking seizures against the business assets, and/or your secured creditor may have filed a notice to enforce its security. An orderly manner by which to wind up the operations can be to file an assignment in bankruptcy with a Licensed Insolvency Trustee. In this way, the rights of all creditors are respected under the Bankruptcy and Insolvency Act and an organized liquidation can take place.
We can help you by:
- Preparing the documentation to file the bankruptcy
- Advising you of your duties as an officer of a bankrupt corporation
- Liquidating the assets on a timely basis
- Handling all inquiries from your creditors, including former employees, trade suppliers and government authorities
- Preparing and submitting all reports required by government authorities
Section 244 notice – Notice of Intention to Enforce Security
Under the Bankruptcy and Insolvency Act a Notice of intention to Enforce Security is required to be given to the entity if a secured creditor wishes to act on its security such as appointment of a Receiver or a Licensed Insolvency Trustee. As a small business owner who receives this notice from a secured creditor knows that the relationship between you and the bank/creditor has come to a critical point.
This notice must be delivered to any debtor with at least ten (10) days notice before any secured creditor can act under their General Security Agreement such as appointing a Receiver or a Licensed Insolvency Trustee. If you have received one of these notices, you may still operate your business and you may have other options such as filing a proposal or indeed filing for bankruptcy. However, this formal notice indicates that not much time is remaining and immediate action is required.