To start with, bankruptcies are not as straightforward as they require hours of groundwork.
Financial consultations, meeting with trustees, legal process and preparation of a financial plan for repayment of debt can be an overwhelming experience.
On the other hand, there is a constant fear of losing out on critical financial assets, credibility in the market, and damage to business reputation.
Thus, financial planning holds significance in every business.
J. Bottom & Associates New Westminster, BC Licensed Insolvency Trustee
A business launches with aspirations to excel in the market by offering unique products and services.
However, due to unfavorable circumstances or reasons like loss of key clients, reliable employees, and poor financial management, a business can reach the brink of wind-up.
As the losses build-up and the earning capacity shrinks, debt starts to pile up, raising concerns at the creditor’s end.
In a region like New Westminster and across Canada, such situations push many businesses into filing for bankruptcy.
Filing For Bankruptcy in New Westminster
Contrary to popular belief, bankruptcy helps in saving any firm’s reputation in the market.
The legal procedures governed by the legislature allow the business to respond to its debts in a planned manner and also limit the pressure from creditors.
From debt assessment to consolidation, and management, a business can seek trustee’s help in sorting out the liabilities according to the bankruptcy law in New Westminster.
Trustees provide support in debt repayment to the debtor, while the laws pertaining to debt repayment are regulated by the government in Canada through Bankruptcy and Insolvency Act or BIA.
In case if business files for bankruptcy, then with relation to debt repayment, separate procedures have also been defined for every province or region in Canada.
Regarded as insolvency in initial stages, a bankruptcy in business can be effectively turned into a settlement with a consumer proposal.
A consumer proposal is highly beneficial alternatives, which also help the business protect its market reputation and credit ratings for the future.
New Westminster British Columbia V3M 1A5