Your financial difficulties may be too much to realistically restructure the corporation. In some cases, bankruptcy is an inevitable option to clear you of your debts. When a corporation has declared bankruptcy, a trustee is then appointed and responsible for the assets at hand. The trustee will review all the debtor’s assets to determine which assets the creditors may be entitled to repossess.
A bankruptcy may occur in numerous ways, such as:
The debtor declares bankruptcy.
The court grants a bankruptcy order upon the application of a creditor.
The court or creditors refuse a restructuring proposal made by the debtor.