0029 - Debt Related Queston: Bankruptcy Question # 0029

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QUESTION #0029:

I thought my bookkeeper was taking care of both my personal and business expenses. I found out that bills from the business suppliers are past due, and that the credit cards and line of credit are now maxed out. I need to get back on track or my suppliers won’t deal with me anymore, which will basically stop me from earning an income.



ANSWER:

As the business owner it is your responsibility to ensure the finances are in order. You should receive monthly reports on the revenue received, invoices outstanding, and expenses paid. As to your suppliers, try to negotiate a payment plan. They may decide that future supplies/services must be paid for Cash On Delivery. Also check up on your personal tax, GST, Source Deductions/WCB for employees. If these agencies are owed funds they may accept a payment plan. If they refuse to accept a payment plan, then a Consumer Proposal may be an option, and as a last resort a bankruptcy assignment