Commercial insolvency in Canada
Ok kiddo, let's talk about something called commercial insolvency in Canada. This means when a business is having a hard time paying all the money they owe to their lenders or suppliers. It's kind of like when you owe your friend a toy, but you can't give it back because you lost it or don't have any more toys to trade.
When a business is in insolvency, they have a few options to try and fix the problem. They can either try to work with their lenders and suppliers to come up with a plan to pay back what they owe over time. Or, they can go through something called bankruptcy, which means they can't pay back what they owe and they need to close their business.
If a business chooses to go through bankruptcy, it's like a big, official way of telling everyone that they can't pay back what they owe. A special person called a trustee is put in charge of selling off all of the business's assets (like toys or furniture) so they can use the money to pay back some of the lenders and suppliers. Once the trustee has sold everything off, they will use the money to pay back some of the debt the business owes.
Overall, commercial insolvency in Canada is when a business has to figure out how to pay back all the money they owe. They can either work out a payment plan with their lenders or suppliers, or they can go through bankruptcy and sell off everything they own to try and pay back some of the debt. It's kind of like when you have to save up your allowance to pay back a friend or grown-up that you owe money to.
When a business is in insolvency, they have a few options to try and fix the problem. They can either try to work with their lenders and suppliers to come up with a plan to pay back what they owe over time. Or, they can go through something called bankruptcy, which means they can't pay back what they owe and they need to close their business.
If a business chooses to go through bankruptcy, it's like a big, official way of telling everyone that they can't pay back what they owe. A special person called a trustee is put in charge of selling off all of the business's assets (like toys or furniture) so they can use the money to pay back some of the lenders and suppliers. Once the trustee has sold everything off, they will use the money to pay back some of the debt the business owes.
Overall, commercial insolvency in Canada is when a business has to figure out how to pay back all the money they owe. They can either work out a payment plan with their lenders or suppliers, or they can go through bankruptcy and sell off everything they own to try and pay back some of the debt. It's kind of like when you have to save up your allowance to pay back a friend or grown-up that you owe money to.