im mean..if the business have a debts. and business become bankrupt. who will pa

  1. profile image45
    vons_setter17posted 8 years ago

    im mean..if the business have a debts. and business become bankrupt. who will pay for the debts?? is

    who will pay?? why??

  2. chinweike profile image69
    chinweikeposted 8 years ago

    If the business is an incorporated entity, nobody pays for the debt, rather, the company's properties are realised (sold/liquidated) and the proceeds used to settle the creditors in order of preference, paying the ordinary shareholders last. The reason for this is that the company by being incorporated, saperated ownership from management. hence, personal assets will not be touched in event of debt.
    If on the order hand, the business is not incoporated, the sole proprietor(s) will be responsible for the debt incuured by the business.
    I hope this answers your question?

  3. profile image50
    jackdohsonposted 5 years ago

    Getting the right debt management advice can set you up to clear your debts quickly and efficiently. No legal documents need to be signed, so missed payments won’t directly result in repossessions.

    The Bankruptcy-Insolvency company in the UK will help you in reducing your debts.

 
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