60 - Understanding Receivership vs Bankruptcy

DebtMatters Podcast

Although the economy has started to improve, small businesses are burdened with a staggering level of debt. COVID related debt and rising costs have posed a major challenge to small business recovery in Canada. Like Bankruptcy, Receivership occurs when a business has secured debt that they are unable to pay. But unlike a Bankruptcy, it is usually a creditor that calls in a Licensed Insolvency Trustee to act as a Receiver. Daniel Maksymchak, Licensed Insolvency Trustee with LCTaylor explains what the term Receivership means. He clarifies the difference between Bankruptcy and Receivership.

Daniel also covers:

• The role of a Licensed Insolvency Trustee in Receiverships
• The benefit to the business of having a Receiver take over
• At what point will the bank start the process
• What happens when the business is sold
• Why reaching out to an LIT can minimize personal damage

Licensed Insolvency Trustees are federally regulated and approved by the Canadian government. They can give you unbiased advice, whether you are struggling with personal debt or your business is in financial trouble.

About Daniel Maksymchak

Daniel has worked in the bankruptcy and insolvency field since 2010. His career began in accounting, receiving his Chartered Accountant designation in 2009. He attained his Licensed Insolvency Trustee accreditation in 2014.

Daniel is a member of the Canadian Association of Insolvency and Restructuring Professional (CAIRP) and has volunteered his time with numerous causes in the community.

Additional Resources

• LCTaylor Licensed Insolvency Trustee
• Receiverships
• 5 Ways to Get Manitoba Debt Help: Your Key to Debt Relief