We have come across the news of major businesses and multinational organizations declaring bankruptcy from time to time, and they do seem to be doing okay. TV shows and the media have always portrayed it as a coward’s choice and an effective one because you get to walk away without any problems. Now all of this is only one side of the coin and the process is more intricate than this, and the idea that you can walk out of a bankruptcy proceeding without any scratches on you is a harmful lie that ends up with a lot of naive business owners filing for it when the going gets a bit tough. If you are considering declaring bankruptcy due to outstanding debts, you should ideally consult a lawyer first, ideally a bankruptcy lawyer. You can check out CES Law and book an appointment today.
The biggest misconception about bankruptcy is that you will have defaulted on all outstanding debts, which is not entirely true. This is a case-to-case scenario and some people still are left with a debt that they will have to pay off. Even if the debt is “canceled”, the court will usually give away some of your assets to pay off the debtors to quite an extent. So, you can lose assets and you can still end up with some debt left.
You also have to consider the fact that this can affect future financial ventures like getting loan approvals, being selected by start-ups or incubation centers, and a bad credit score. This can also affect your visa rejection/acceptance rate and so on. So, you want to sit down with a lawyer and confirm whether or not bankruptcy is the right or even the best option given your case.