Bankruptcy

Brief Description

Businesses should consider bankruptcy when they face insurmountable debt and financial distress, especially when other options for debt relief have been exhausted. This typically involves situations where a company cannot meet its financial obligations, including paying creditors, suppliers, or employees.

It may be crucial to consult with a bankruptcy attorney or financial advisor before making the decision to file for bankruptcy. They can assess the business’s specific situation, explain the different bankruptcy options, and help determine the best course of action.

Authorities For Further Research

(i) United States Constitution, Article I, Section 8.

(ii) United States Code, 11 USC § 1 – 1532.

(iii) Federal case law.