Will bankruptcy of owner affect business?
September 29th, 2007 by Questions
I own a healthy business (incorporated) with good cash flow and increasing profits. Due to reckless speculation I have lost significant amount of money. I owe about 625,000 dollars to various creditors , my business owes about 475,000 dollars to suppliers and employees. I have about 125,000 dollars worth of assets and my business has about 750,000 in inventory , machinery and accounts receivable. The business is built on my personal reputation and will lose all clients if I cease to operate it.
If I declare bankruptcy what will happen to my business?
Will the business be declared insolvent? Will the employees get laid off and the inventory and machinery sold? Will my suppliers get their money? Will existing contracts be honoured?