Why Should an Indebted Company Avoid Bankruptcy?

Business Bankruptcy
Knowledge Center

Business Bankruptcy > Forum

New Topic

Mohammad Hamdan
Russian Federation
Companies sometimes go through periods of distress and crises as a result of the risks surrounding them, which sometimes lead them to consider filing for bankruptcy. The declaration of bankruptcy is considered as a solution for the debtor to get rid of her/his debt, and for the creditor to recover her/his money. However, such a solution has to be the last choice which is used by the debtor to solve her/his stops paying problems, but why is that? And why it is better for debtor companies to reconcile with their creditors and solve problems related to debts in consensual ways? In other words, why should indebted companies avoid bankruptcy? LOSS OF CONTINUITY The bankruptcy system was designed with the primary goal of restoring rights to creditors of corporations or traders who stopped paying their debts. In order to achieve this goal, it is necessary to dismantle the debtor company's business, by selling its assets and paying off its debts. For this, it is necessary to terminate som (...) Read more? Sign up for free

  Warren Miller, CPA, CFA
United States

Why Would a Company File for Bankruptcy?? (1 of 2)

The short answer is that there are reasons a compa (...)


More on Business Bankruptcy
The Principles of Bankruptcy
🔥10 Tips to Prevent Bankruptcy
Why Should an Indebted Company Avoid Bankruptcy?
An Out of Court Workout as an Alternative to Bankruptcy
How do Bankruptcy Procedures Affect the Creditors?
How to Avoid Bankruptcy
Special Interest Group

Are you interested in Business Bankruptcy? Sign up for free

Notify your students

Copy this into your study materials:

and add a hyperlink to:

Link to this discussion

Copy this HTML code to your web site:

Business Bankruptcy
Knowledge Center


About 12manage | Advertising | Link to us / Cite us | Privacy | Suggestions | Terms of Service
2021 12manage - The Executive Fast Track. V15.8 - Last updated: 26-2-2021. All names of their owners.