Corporate Bankruptcy Services in Canada
Protect Your Business, Your Assets, and Your Peace of Mind
We Help Businesses Navigate Financial Distress
For over 50 years, Crowe MacKay & Company has supported businesses across Vancouver and Surrey with trusted, effective debt solutions. We understand how overwhelming financial pressure can be — especially when your company’s future is at stake.
Whether you’re a director, shareholder, or small business owner, our Licensed Insolvency Trustees will help you understand your legal obligations, protect your assets where possible, and explore the best path forward — restructuring, a formal proposal, or corporate bankruptcy.
We don’t offer one-size-fits-all solutions. We take the time to understand your business, challenges, and goals — then provide clear, practical advice so you can confidently make informed decisions.
What Is Corporate Bankruptcy in B.C.?
Corporate bankruptcy is a formal legal process that allows insolvent companies to wind down operations, liquidate assets, and address outstanding debts. It is governed by Canada’s Bankruptcy and Insolvency Act (BIA) and administered by a Licensed Insolvency Trustee (LIT).
When Corporate Bankruptcy May Be the Right Solution
Suppose your business in Vancouver or Surrey is no longer viable, and efforts to restructure through a corporate proposal or plan of arrangement have failed. Corporate bankruptcy may be the best path forward. At Crowe MacKay & Company, our LITs guide businesses through this difficult process with professionalism and transparency.
Bankruptcy proceedings under the Bankruptcy and Insolvency Act (BIA) can be initiated by either the business (voluntary) or its creditors (involuntary), with the goal of:
- Ensuring a fair distribution of assets among creditors
- Investigating the financial affairs of the business
- Reversing unfair or undervalued transactions
Types of Corporate Bankruptcy
Voluntary Bankruptcy (Assignment into Bankruptcy)
If your business cannot meet its debt obligations and there’s no viable path to recovery, you may voluntarily file for bankruptcy. With this option:
- Your company assigns all assets and liabilities to a Licensed Insolvency Trustee (us).
- The Trustee assumes control of the company’s property and liquidates assets.
- A meeting of creditors is held to affirm the Trustee and begin distributing funds according to priority.
Involuntary Bankruptcy (Creditor Petition)
Creditors can petition the court to force a business into bankruptcy when debts are unpaid. In this case:
- A Trustee (us) must agree to act in advance.
- The company has been served notice and can dispute the petition.
- If granted, the Trustee is appointed and begins managing the estate.
Once bankruptcy is declared—voluntarily or by court order—the administration process is the same: assets are liquidated and proceeds distributed to proven creditors under the BIA.
Common Situations We Help With in B.C.
- CRA tax debt or aggressive collections
- Pressure from lenders or suppliers
- Legal claims or court judgments
- Concerns about director liability
- Risk of asset seizure or receivership
- Business is no longer viable due to economic shifts
- Restructuring to preserve viable parts of the business
How Our Process Works
- Free Initial Consultation – confidential review of your business’s financial position
- Business Health Assessment – examine debts, assets, liabilities, and cash flow
- Customized Plan – whether it’s restructuring, a proposal, or bankruptcy
- Stakeholder Coordination – we handle creditors, legal filings, and court communication
- Execution & Oversight – ensure a smooth transition through the selected solution
- Post-Process Planning – helps you exit cleanly and rebuild where possible
Corporate Debt Services
FAQ’s
What’s the Difference Between Corporate Bankruptcy, Business Bankruptcy, and Insolvency?
Bankruptcy is a legal process; insolvency is a financial condition. “Business bankruptcy” is a general term that may include either.
What’s a Division I Proposal?
It’s a formal offer to creditors to repay a portion of the debt while avoiding bankruptcy. It’s court-supervised and administered by an LIT.
How Does the Companies’ Creditors Arrangement Act (CCAA) Differ?
CCAA is typically used by larger corporations owing over $5 million. It allows greater flexibility in restructuring.
Can Directors Be Held Personally Liable for Company Debts?
Yes — particularly for unpaid payroll, GST/HST, or wrongful acts during insolvency. We provide clear guidance at Crowe MacKay and Company.
What Happens to Business Assets in Bankruptcy?
The trustee liquidates assets to repay creditors based on a legally defined priority.
Can Bankruptcy Protect My Company From Lawsuits or CRA Action?
Yes — upon filing, an automatic stay of proceedings stops most legal and collection actions.
Can I Avoid Bankruptcy Through Restructuring?
Often, yes. A Division I Proposal or informal arrangement may allow your company to survive and recover.
What Role Does a Licensed Insolvency Trustee Play?
The LIT oversees the entire legal process and ensures compliance with bankruptcy and insolvency laws.
Is Your Corporation Experiencing Financial Difficulties?
If you have questions on corporate bankruptcy in Vancouver or Surrey, contact our Licensed Insolvency Trustees by calling (604) 689 3928, emailing [email protected], or filling in the form below.
Book a Free Consultation
Our licensed experts are here to answer all your questions about bankruptcy and consumer proposals. Whether you're an individual or a business, we’ll help you understand your options and guide you through every step of the process with care and confidence.