If the company does not pay or comes to an arrangement to pay its debts within 21 days or gets the statutory demand canceled, its creditors can ask the court to make a bankruptcy order attempting to enforce a court judgment that's been made against the company using another enforcement process. ( www. citizensadvice.org). This company is not a good payor. It is better not to apply for a loan when thinking to run a business. What is your stand on bankruptcy? Is the business to blame for his negligence of duties and responsibilities?
Force Bankruptcy of a company
- Thread starter Starmix
- Start date
Many companies do that because they don't like to pay its investors and share holders and in India 4-5 years back Reliance industries under Anil Ambani did that and many companies find this and use this as a tool to fool its customers and investors
- Thread starter
- #5
One concrete example is banking. There are banks ordered for closure because they cannot pay the depositors. It's simply because there are bank loaners who failed to pay their loans. If the collateral is land title the bank is forced to confiscate it and sell thru auction. If still many don't pay the sanctioned from court will be bank to declare bankruptcy.
- Thread starter
- #7
It's the court order to follow. The bank has Trustee and consultant plus own lawyer. If the case is unsolvable, they'll approach the court and court would advise bank to declare bankruptcy for they're allowed to sell their assets and liabilities an act to pay the depositors.
- Thread starter
- #9
In our place, it is not the court to confiscate. The court orders to declare bankruptcy and have the corporate trustee sell the properties confiscated from the loaners to pay back the bank depositors. After clearing, the bank may be assumed by the banks through Central Banks' approval between the agreement of the two parties from Bank A and Bank B.
- Thread starter
- #11
It is a must to sell those confiscated properties to pay those whose bank deposits are in millions.
Many factors can cause business bankruptcy, both internal and external. Business bankruptcy must also be decided by the court. Business cannot be blamed because anything can happen outside of the human factor. Based on the court decision, the company will sell assets to pay off all debts.
