How to turn your business around, according to your situation

 

Financial difficulties are common in the business world. In fact, they are more common than anyone might think, such as financial debt that can easily be resolved by a debt loan but some need other solutions. Whether the owner is a small business owner, a large business owner, or a self-employed in popular cities like Mississauga, below are two solutions to solve most finance-related business problems.

 

  1. Bankruptcy proposal

 

A debt restructuring proposal consists of an agreement reached through a licensed insolvency trustee between customers and the creditors that allows the business to continue operating, extend payment terms and review the amount of payment one can owe. This means that the business can continue to operate and eventually the debtor will be free from his/her debt.

 

The debt restructuring proposal is the most popular method after loan consolidation and credit counseling among business owners as well as creditors in and around Vaughan because not only the business continues to operate, but the creditors would receive more than they would have received if the owner company had declared bankruptcy.

 

Filing a debt restructuring proposal has many other advantages. The debtor will no longer have to negotiate with the creditors since the debtor’s trustee will take care of the whole process. When filing a proposal, all payments to creditors, seizures of money, and legal proceedings will stay. The debtor will also avoid any lawsuits or actions that the creditors might otherwise take against his/her business.

 

In order to be able to file a restructuring proposal, one must first consult a licensed insolvency trustee or he/she can take our debt help for example, in Vaughan. Next, file a Notice of Intent informing all of the creditors about filing a proposal within the next 30 days. After the filing of the debt restructuring proposal, all garnishment, legal proceedings, and payments to creditors will be suspended and a meeting between the creditors will take place to approve or reject the proposal.

 

2.                  Commercial bankruptcy

 

If the debtor is absolutely unable to pay the debts of the business or if the proposal has been rejected, one may consider bankruptcy but our credit counseling services will surely help the debtor to avoid Bankruptcy.  Bankruptcy is the liquidation of all the assets of the business. By liquidating all of its assets, the debtor can pay back the amount he/she owes from the creditors and the business will become inactive.

 

Bankruptcy can be filed in two ways in cities such as  Brampton:

·  The first method is a voluntary assignment, which means that the owner will voluntarily assign the assets of his/her business to his/her trustee, who will be responsible for handling the bankruptcy. 

·  The second and unusual method is receivership, which means the creditors will get a court order to have the business declared bankrupt. In the case of this second method, a licensed insolvency trustee will be provided by the court.

 

While bankruptcy might sound scary to most people and one can take help from credit counseling services but it's actually a simple means to get rid of debt and be able to start over. Not only does it ease the financial burden, but it will also protect the business by ending all legal actions brought by creditors or other individuals, and may put an end to foreclosures of property by some creditors in Canadian cities like Vaughan. 

 

Although the business becomes inactive, this is a great way for a business owner to start a new business with no debt. However, since the business will become inactive, commercial bankruptcy should only be a last resort but business owners should try to file a proposal first.

 

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