Debt Relief for Small Businesses in BC
Small Business Solutions for Companies in British Columbia
Running a small business is no easy task. You have lots to worry about, from making payroll to ensuring happy customers. Being a business owner is even more challenging when you’re working with less money in the bank than you need. If you need practical small business solutions, reach out to J. Bottom & Associates. We work with companies throughout British Columbia, offering help with debt relief and filing for small business bankruptcy. No matter the specifics of your financial situation, our Licensed Insolvency Trustees can likely help. Here are a few small business solutions to explore with our team.
Save Your Business With Fundraising
One of the first small business solutions we may recommend is fundraising. First, take a look at your personal assets. Are there any that you could sell off? Once you’ve paid down your business debts in this way, start other fundraising efforts. Our past clients have secured funding in the following ways:
- Borrowing from family and friends
- Getting a small business loan
- Working with an investor or new partner
- Crowdfunding
Consider Small Business Debt Consolidation
Small business debt consolidation is often an excellent way to relieve some of your debt problems. This option bundles all your debts together so you only need to deal with one creditor and make one monthly payment. Say goodbye to multiple due dates, endless billing statements, and constant collections calls. With our help, you might even get a lower interest rate.
Make Honesty Your Policy
If you’re thinking about filing for small business bankruptcy, honesty is always the best policy. Communicate directly with your creditors, and some of them may be sympathetic to your situation. In the best scenarios, they may even offer a repayment plan that makes getting out of debt a bit simpler.
Communicate With Suppliers and Customers
When you’re concerned about small business debt recovery efforts, a little communication can go a long way. Talk to your suppliers about getting reduced rates or more affordable contracts. If you explain your situation up front, many suppliers will empathize with your circumstances. In the same vein, consider communicating openly with your customers. If you have a few who owe money, you might offer them a discount to get paid as soon as possible.
Cut Business Costs
Cutting business costs seems like a no-brainer, but many businesses don’t consider it a viable solution to extreme debt. Even if you’re looking at significant bills, remember that every little bit helps. Increasing your profits by just a few hundred dollars can reduce your debt bit by bit. Paying off your creditors, even if it’s small amounts at a time, builds a sense of trust. If you have the time, you might even consider establishing some ways of making money on the side to put toward your small business debt.
File for Bankruptcy
Our Licensed Insolvency Trustees can help you file for bankruptcy when it’s the only feasible option to move forward. The process isn’t easy, but our team is here for you every step of the way. With a deep knowledge of small business solutions and years of experience with bankruptcy law, we’ll work to streamline the process and take some of the stress off your plate.
Consider a Consumer Proposal
Consumer Proposals for small business are yet another way to ease the burdens of significant debt. This process restructures your debt, ultimately making it easier to pay off within the specified time period. Like bankruptcy, negotiating a Consumer Proposal is complex, but the results are often worth it. J. Bottom & Associates will be at your side as you work to reduce your debt and improve your financial situation.
Talk to a Licensed Insolvency Trustee Today
Finding yourself in business debt can be scary, but with a partner like J. Bottom & Associates, you can come out on the other side. Our small business solutions are designed to help you rescue your company and recover your financial standing. No situation is too dire—we’re always here to consult with you and learn more about your circumstances. A free consultation is all it takes to make that first step toward financial stability. Our services are open to clients in New Westminster, Port Coquitlam, and North Vancouver. Contact us today to schedule.
Small Business Debt Relief Frequently Asked Questions
Running a small business involves many financial responsibilities, but unforeseen circumstances can lead to unmanageable debt. If you’re facing creditor calls and cash flow shortages, finding a clear path forward is essential, but the legal and financial terms surrounding insolvency can be overwhelming. At J. Bottom & Associates Ltd., our Licensed Insolvency Trustees are here to help. We offer corporate debt solutions for companies across British Columbia and understand you have questions about the process. Below, we answer common questions our clients ask about bankruptcy and Consumer Proposals.
Many business owners worry about the public stigma of insolvency. A bankruptcy filing is technically a matter of public record. The Office of the Superintendent of Bankruptcy maintains a database of all filings. Someone would have to specifically search this database and pay a fee to find your information. Unless your business has a massive amount of high-profile debt, it is very unlikely that your bankruptcy will be published in a local newspaper.
Your spouse will only be responsible for your business debts if they co-signed or guaranteed the loan. If the debt is entirely in your name or your corporation’s name, your spouse is not legally obligated to pay it. A bankruptcy or Consumer Proposal filed by you will not directly impact your spouse’s credit rating.
When someone co-signs a loan, they agree to take full legal responsibility for the debt if you cannot pay. If you file for bankruptcy or a Consumer Proposal, your creditors will immediately seek payment from your parents. If your parents cannot make the payments, their credit score will suffer.
Yes. Filing for bankruptcy or a Consumer Proposal triggers a legal mechanism called a stay of proceedings. This legal protection forces creditors to stop all collection actions. The stay of proceedings halts wage garnishments, stops harassing phone calls, and pauses any pending lawsuits against you.
Once your Licensed Insolvency Trustee officially files your bankruptcy or Consumer Proposal, you stop making direct payments to your unsecured creditors. You will make a single monthly payment to your trustee instead. Your trustee will then distribute those funds to your creditors according to the terms of your agreement.
You do not automatically lose your vehicle. British Columbia has specific provincial exemptions that allow you to keep a car up to a certain financial value. If your vehicle is worth less than the exemption limit, it is protected. If you have a car loan, you can generally keep the vehicle as long as your payments are up to date and there is little to no equity in the car.
Yes. One of the major benefits of a Consumer Proposal is that you get to keep your assets and your government benefits. You will continue to receive your GST credit cheques exactly as you did before filing.
A Consumer Proposal does not affect your ability to file or receive your tax returns. You file your taxes normally. In a bankruptcy, the process is different. Your Licensed Insolvency Trustee is required to file a pre-bankruptcy tax return and a post-bankruptcy tax return for the year you file. Any tax refunds owed to you during the bankruptcy period are typically sent to the trustee to be distributed to your creditors.