Force Bankruptcy of a company

[Starmix]

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?

 

[Bisolami]

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?

This is my first time hearing about this but I don't know if it applies to every part of the world. I think the company should be blamed for not paying their debt

 

[Hate2Wait]

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

 

[Shavkat]

In my opinion, if the company is not able to continue due financial problem and the like, it is best to declare bankruptcy. Some companies avail insurances to assist them from not falling into bankrutpcy.

 

[Starmix]

This is my first time hearing about this but I don't know if it applies to every part of the world. I think the company should be blamed for not paying their debt

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.

 

[Bisolami]

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.

I know about this a lot. If you take a loan from the bank and refused to pay them when it is due date they will lock up your company

 

[Starmix]

I know about this a lot. If you take a loan from the bank and refused to pay them when it is due date they will lock up your company

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.

 

[Bisolami]

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.

Here, the court will surely order the bank to take possession of the property and that is why they need to pay banks very fast if they are owing them money

 

[Starmix]

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.

 

[Bisolami]

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.

It is different in every part of the world. In my country the bank shuts down the properties and sells it to people who needs them

 

[Starmix]

It is different in every part of the world. In my country the bank shuts down the properties and sells it to people who needs them

It is a must to sell those confiscated properties to pay those whose bank deposits are in millions.

 

[Suba]

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.

 

[Bisolami]

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.

This is another point I think everyone should understand but at the same time the owner of the company need to always know everything happening in the company to avoid this kind of situation