The verdict in three sentences
When a vendor goes bankrupt at 70 % of development, the first emergency is legal, not technical: recover server access, the Git repository and third-party accounts before the trustee freezes everything. Next, a code audit of 4,000 to 8,000 CAD tells you whether the foundation is reusable. If technical debt is under control, a rescue costs 40 to 60 % less than a rewrite and gets the project moving again in 3 to 8 weeks.
The first seven days: secure what belongs to you
In a Canadian bankruptcy, a licensed insolvency trustee manages the vendor's assets. Your contract defines who owns the code: reread the intellectual property assignment clause and file a proof of claim with the trustee by the deadline stated in the notice to creditors.
| Item to recover | Why it is critical | Risk if missed |
|---|---|---|
| Full Git repository with history | Only reliable record of the real code | Rebuild from scratch |
| Hosting and domain access | The site can go dark at renewal | Service outage |
| Third-party accounts (payments, email, maps, app stores) | Often opened in the agency's name | Customer payments blocked |
| Database and backups | Customer data and history | Irreversible loss |
| Documentation and mockups | Shortens audit and rescue | 1 to 2 weeks of reverse engineering |
| Secrets and API keys | Security and continuity | Breach if former staff keep them |
Rotate every password and API key immediately on recovery: former agency employees may still have access.
Rescue or rewrite: the decision grid
The code audit spends 5 to 8 days on code quality, tests, dependencies and security. It produces a score and a costing of both options.
| Audited criterion | Favours rescue | Favours rewrite |
|---|---|---|
| Framework and versions | Mainstream, maintained framework | Outdated version or niche framework |
| Test coverage | Above 30 % | Below 5 % |
| Code structure | Readable modules, conventions followed | Duplicated logic, 3,000-line files |
| Security flaws | Minor, fixable | Critical and structural |
| Completed features | Over 60 % usable | Under 40 % actually working |
| Estimated cost to finish (90,000 CAD app) | 22,000 to 45,000 CAD | 68,000 to 98,000 CAD |
| Time to restart | 3 to 8 weeks | 3 to 5 months |
Be wary of the 70 % figure claimed by the failed agency: audits often show only 50 to 55 % is actually working, the rest being scaffolding.
Mini case study
Thomas, owner of a 35-employee medical supplies distributor in Toronto, had ordered a B2B ordering portal for 87,000 CAD. The agency went bankrupt after invoicing 60,900 CAD, 70 % of the project.
Audit ordered: 6,500 CAD. Verdict: sound foundation, 55 % actually working, manageable technical debt. Rescue cost: 36,000 CAD and 7 weeks, versus 78,000 CAD and 4 months for a rewrite. Saving: 42,000 CAD, minus the audit, so 35,500 CAD and about 2 months of online orders gained. With 22,000 CAD of monthly revenue expected from the portal, those 2 months are worth 44,000 CAD in sales.
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FAQ
Do I own the code if the agency is bankrupt?
It depends on the rights assignment clause in your contract and the invoices paid. Without a written assignment, the agency remains the copyright owner: have a lawyer review it, an opinion usually costs 500 to 1,200 CAD.
How much does a code audit cost in Toronto?
Between 4,000 and 8,000 CAD for a mid-sized application, 5 to 8 days of work with a costed report of both options.
Is a rescue always cheaper?
No. If test coverage is near zero and critical flaws are structural, a rewrite can cost less over 3 years. The 40 to 60 % saving only holds when technical debt is under control.
How do I prevent this from happening again?
Require a Git repository in your name from day one, third-party accounts opened by your company and an IP assignment clause that transfers rights as payments are made.
How long to restart the project?
Plan 1 to 2 weeks to recover access and audit, then 3 to 8 weeks of rescue depending on the remaining scope.
Let's scope your project. Costed code audit, access recovery and a rescue of your application in 3 to 8 weeks, audits from 4,000 CAD. Detailed quote within 48 h. WhatsApp +221 77 596 93 33.
Mohamed Bah
Fondateur, Kolonell
Passionate about digital and entrepreneurship in Africa, Mohamed has been helping Sénégalese businesses with their digital transformation since 2020. Founder of Kolonell, he believes every SME deserves a professional and accessible online présence.
