What Will Happen If A Company Goes Bankrupt?
What will happen if a company goes bankrupt?
A company can go bankrupt when it's no longer able to pay back its debts. It might happen slowly, with a series of unprofitable years and a gradual decline in the value of its assets relative to its debts, or it could be sudden and dramatic, as when an unexpected event—like an unanticipated change in customer preferences, or a lawsuit—occurs that causes the asset value to drop precipitously. Either way, it can be hard on everyone involved. Bankruptcy is a legal process through which a company is reorganized under court supervision. If the company has enough value left after the bankruptcy proceedings to permit, its owners may decide to start again with the same company name or they may choose to reorganize under a different name and try to rebuild their business. The employees will likely lose their jobs, but they'll still have the right to receive unpaid wages due them by law. Their other benefits might be cut off if the company doesn't have enough money coming in. Bankruptcy also affects vendors, who are owed money by the company but may not get paid what they're owed in full. In some cases, they could even end up losing more than they're owed if there aren't enough assets left over.
If you have any questions or need a Bankruptcy Lawyer, please call this law firm for a free consultation.
Ascent Law LLC
8833 S Redwood Road Suite C
West Jordan UT 84088
(801) 676-5506
