Being bankrupt is one aspect that can demoralize an individual or owners of a certain business entity. This awful development has the potential of dampening any business plans and procedures thus it should be treated with caution and emergency.
In financial terms bankrupt is commonly referred to as bankruptcy or insolvent; this situation may result in a company or individual’s failure to pay debts and creditors will keep on knocking and making endless calls demanding you to pay them back.
Failure to pay may result to legal action being taken against you or the company; to avoid this, a company has to prepare certain documents to declare that its bankruptcy or insolvent. Here is to what you what you are ought to do when faced with such an alarming scenario:
Attach a portion of your salary terms of a court order, subject to legal fees, collection commissions and interest
Attach a portion of your salary in terms of a court order, subject to legal fees, collection commissions and interest
Attach your assets to have them sold at an auction. Assets normally attract awfully reduced prices on these auctions, because there’s no reserve price and the auctions are poorly advertised. The takings of such an auction are then reduced even more by the deduction of an assortment of fees and commissions, such as exclusion and storage fees, sheriff’s fees or auctioneer’s commission, the legal fees of the relevant creditor and the collection commissions charged by attorneys or collection agencies
Attach debts due to you or your business (accounts still payable by your clients) in terms of a court order, subject to legal fees, collection commission and interest
If you don’t understand the above, you may seek the services of an independent trained debt expert, financial expect or account.