Bankruptcy Queries as a sponsor

[warhound]

Hello folks,

So i was able to successfully sponsor my parents over as PR's to canada being a PR myself this year. We are thinking of starting a small business to keep parents engaged.

To keep it short - Im worried should the businesses fail and the repercussions they would have to my parents as the beneficiaries of sponsorship. There are 2 possible scenarios im curious about:

• If i was to start a business in my name and go bankrupt - what effect would it have on my parents PR file
• if i was to open the business in parents name and it goes bankrupt , what effect would it have on their immigration file

thank you kindly ahead of time

 

[scylla]

Hello folks,

So i was able to successfully sponsor my parents over as PR's to canada being a PR myself this year. We are thinking of starting a small business to keep parents engaged.

To keep it short - Im worried should the businesses fail and the repercussions they would have to my parents as the beneficiaries of sponsorship. There are 2 possible scenarios im curious about:

• If i was to start a business in my name and go bankrupt - what effect would it have on my parents PR file
• if i was to open the business in parents name and it goes bankrupt , what effect would it have on their immigration file

thank you kindly ahead of time

No issues with bankruptcy from an immigration perspective. Just make sure they don't go on social assistance within the period of undertaking.

 

[armoured]

• If i was to start a business in my name and go bankrupt - what effect would it have on my parents PR file
• if i was to open the business in parents name and it goes bankrupt , what effect would it have on their immigration file

Broadly speaking, none, as long as there's no criminal statutes involved, and they don't go on social assistance.

Mind, that's not legal advice - there's a big difference in impact outside of just PR status between them / you going bankrupt and a legal entity with limited liability. (And of course type of business / whether the business will take on debts and liability - sometimes limited liability not necessary)