Bankruptcy is a legal way to settle all debts if a business or individual is in over their head. without it many people wouldn't take the risk going into business or being entrepreneurs. Many great inventers and successful companies started after going through bankruptcy court.
I have never had to take that route Tom but if I did I would pay back every dime when I became financially able to do so. It would always be a debt to me and my responsibility to pay. I would use bankruptcy as a TEMPORARY measure, not a long-term solution. Never having had to declare bankruptcy I have no idea what is involved. You CAN PAY BACK can't you when you're financially stable and able? Thank you for your reply.
A bankruptcy court decides how much you would have to pay on the dollar owed and when the money runs out the rest get nothing etc I suppose you could pay back what you are owed to people or companies but it gets complicated since they have tax write offs. if you paid it back it could cause legal issues.
Some who own multiple companies will let one or two go bankrupt for tax purposes. They can write that off their taxes. It's called a tax shelter.
This post was edited by Benedict Arnold at October 31, 2016 9:04 AM MDT
Oh I would rather NOT. I have been thinking about it, I may not have to.
But, it DOES stop your creditors. That is a HUGE positive and that is why people do it. To stop you from drowning in debt, remember? Looking poor is not always a bad thing.
TomThumb 