Business bankruptcy question: a Quora user asks: What happens to a person whose business goes bankrupt?
Victor Fong, Licensed Insolvency Trustee in Toronto, Canada replies:
More often than not, the business was also the owner’s sole source of income. So the business owner has most likely accumulated a lot of personal debt to finance his living expenses because he wasn’t earning enough money from the business. So in my experience, the business owner will usually file for personal bankruptcy alongside the bankruptcy of his business corporation.