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We think that bankruptcy (both real and legal) is like a chess game where the stakes are very high and the payoff is predetermined by those who make the first move and the extent of moves players calculate their plans. Of course, much depends on the skill of the players, but in contrast to classical chess, this game is not played by two people or even two teams, a far larger number of parties are involved in this game.
So what is the legal bankruptcy?
To legal bankruptcy takes place mainly in the following cases:
— Liquidation of business with debts (usually it goes under the simplified procedure). Often it represents the final stage of reorganization and the work of the consulting companies.
— Extraction of the money of the company from under the mortgage, loan or other debt obligations. This method is usually used in informal holdings. It requires careful preliminary financial and legal audit. Often, after some training, and asset protection a person can come to the agreement with creditors without filing for bankruptcy.
— To back the funds from debtors. Arbitral manager, can not only “protect” from creditors, but also bring very strickt requirements on the debtor, up to criminal prosecution. Moreover, he officially gets access to all accounting and legal documents of the debtor and conducts their audit. He may, on their basis to initiate criminal proceedings against the directors and owners, claiming that they had been accused false accounting and tax reporting, that even a legally non-debtor company’s founders are essentially one business and all of their assets can be combined into a common pool of debt.
—Financial improvement of the business. Purchase of business. Liquidation of holdings in companies with large debts and the removal of their assets in the new legal entity or the sale by auction “to its customers” for “debt” means. It is often used when buying a business, as it is 100% protection of the bought assets from any of the old claims. It’s cheaper and more reliable method than the legal merger / takeover.
— Solving of tax and even criminal problems. Yes, through bankruptcy they can also be solved, but this may be only a separate private conversation.
It is easy to determine that in such cases a “chess game named legal bankruptcy” It is good for a debtor to have preliminary preparation of the business to legal bankruptcy his part, burdened by debt, with a careful allocation of assets and audit accounting documentation and contracts in a way that was impossible / extremely difficult to establish the relationship of assets to debts and creditor benefits the first time to enter the legal bankruptcy of the debtor in order to prevent asset stripping, or if they did it too late – then try to prove the relationship of assets derived from debt.
Practically all of us still remember the times when it was possible to buy a thing even if one had not enough money. Credit was a simple way out. It is not surprising that now many of those who hunted for a credit, are looking around for how to avoid bankruptcy.
Those people who managed to get into the situation when they owe more money than they have, definitely have to look for ways to avoid bankruptcy.
Being in such condition it is smart to use any ways to get over it. Take advantage of such unique opportunity as the Internet technologies. Using them at full capacity could give great results. Making use of search engines, forums, social networks,web sites one will find a number of tips to avoid bankruptcy and a great deal of other relevant info. Also subscribing to RSS on this blog will assist to keep track of new publications and tips on the topic.
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