Any enterprise is susceptible to bankruptcy.
"Generally, a business declares insolvency when its liabilities exceed its assets and it cannot meet its financial obligations. You can petition for business bankruptcy regardless of the nature of your business. In fact, it is a relief for the business owner who is unable to meet credit-related problems and has no other way to pay them off.Bankruptcy must always be a last resort, because when a business declares bankruptcy, it loses its credibility and faces the possibility of public humiliation. Despite the fact that there are significant differences between personal and business bankruptcy, the end result in both cases is the same: a search for a means out of the situation.Before filing for business bankruptcy, it would be prudent to obtain the advice of a business debt management consultant to ensure that you have exhausted all other options. Chapter 7 and chapter 13 are the two most common forms of bankruptcy. The second option, federal bankruptcy, is the preferable one. In this instance, the law does not require you to liquidate the business; rather, the company is responsible for ensuring that it pays its debts in accordance with the terms agreed upon by both parties. To file for business bankruptcy, proprietors must file a petition with the bankruptcy court. Once the petition is filed, an automatic stay prohibits creditors from contacting or collecting from debtors.The one advantage of filing for bankruptcy is that it provides business owners the opportunity to reorganize their debts and revive a failing business. Chapter 13 allows debtors to establish repayment terms that can last up to three or even five years, by which time the debtor's business should have recovered.
" - https://www.affordablecebu.com/
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"Any enterprise is susceptible to bankruptcy."
was written by Mary
under the Finance / Wealth
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comments. The article was created on 03 June 2023
and updated on 03 June 2023