Accepting bankruptcy in business

[Bango]

Sometimes nothing goes well in your business. The economy is bad and your employees are in arrears and you have a lot of debt. In that case, do you try to declare bankruptcy or do you borrow from banks to change the situation? Sometimes it happens that you borrow a lot of money from banks, but you don't have the ability to pay it back, and your debt increases even more. In this case, what is the solution?

 

[eldavis]

In most cases most of the business owners facing this usually end up selling the business to a more capable company or organization, or they simply merge the business with another.

 

[Bango]

In most cases most of the business owners facing this usually end up selling the business to a more capable company or organization, or they simply merge the business with another.

Or they take a lot of loans from banks so that they can change the situation, but the situation worsens and your debts increase. The situation is really difficult. In my opinion, it is better to accepting bankruptcy before your debts increase

 

[cherry123]

That's business for you sometimes you gain while sometimes you lose. but you need to try if you can't then just selling the business will suffice and you gain from it.

 

[nomad]

If you cannot pay the debt even after liquidating your business, you will have to sell your assets to pay your loan. You cannot skip bank loan. If you can't, your nearest kin will have to pay it. That's how it goes in my home country.

 

[Suba]

If uncertain economic conditions make your business fail, there are lots of unpaid employee salaries and lots of trade debts, if you are going to declare bankruptcy you have to go through the courts to liquidate company assets, and pay company debts including employee salaries. So you don't need bank debt.

 

[uptrendfinancialsignal]

If a business isn't doing well, there is possibilities of it becoming bankrupt and accepting it at the early stage is better.

 

[Bisolami]

Sometimes nothing goes well in your business. The economy is bad and your employees are in arrears and you have a lot of debt. In that case, do you try to declare bankruptcy or do you borrow from banks to change the situation? Sometimes it happens that you borrow a lot of money from banks, but you don't have the ability to pay it back, and your debt increases even more. In this case, what is the solution?

I think any reasonable loan company or bank borrow you money when you have a collateral. You are surely going to use your collateral to pay back which means hat they will own any property that can be used as the collateral

 

[Rubz]

I believe that if one is in a lot of debt in business, it is better to declare bankruptcy than to borrow especially when one have no means of paying back.

 

[timewo]

Selling any assets which are not being used or inventory cheap is one of the most widely used methods for businesses making losses to reduce their losses , this option should be tried first.