this post was submitted on 04 Sep 2023
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Monday: Silly Questions (self.personalfinancecanada)
submitted 2 years ago by affairesdepiasses to c/personalfinancecanada
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[–] Rodeo 4 points 2 years ago (1 children)

What exactly happens when you go bankrupt?

Why is it that I've seen small business owners go bankrupt, and then in a few short years they're back up and running again, presumably they must have taken loans to open the new business.

Why does going bankrupt not seem to have any long term consequences?

[–] Knoxvomica 3 points 2 years ago (1 children)

As far as I understand it, the business goes bankrupt, not the individual.

[–] Rodeo 1 points 2 years ago (1 children)

In a sole proprietorship, aren't they the same thing? That would only apply if incorporated, which most small businesses aren't.

[–] Knoxvomica 1 points 2 years ago

In that case I think you're right. Quite a few businesses are incorporated though. Especially in the professional services realm where liability is a huge issue.