Last Modified: Mon, Apr 04 2016. 06 48 PM IST
In about 80% cases, the business fails due to cash flow problems, which can be overcome by talking to bankers to extend the loan, or with the help of short-term loans
Bankruptcy is a legally declared inability or impairment of ability of an individual or organisation to pay its creditors. A bankruptcy happens when a person voluntarily declares herself as an insolvent and goes to the court. On declaring the person as bankrupt, the court becomes responsible for liquidating the personal property of the insolvent and distributing it among the creditors. This process is supposed to be amicable as it seeks to avoid threatening calls by creditors. However, in reality, it is not that smooth or eas…
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