Bankruptcy- Winding Up Your Company
If you are in court because of bankruptcy then there is a high chance that someone has asked the court to wind up your company. Your creditors can apply in court to close down your company if you don’t pay off your debt for the amount that has been requested. This is normally done through a “winding up” petition. Your creditor can actually withdraw this petition if your company manages to pay off the debt that has been requested or they can make an arrangement for you to pay it if you want. The court can also put your company into liquidation if they think that your assets are going to be removed before the petition can be dealt with. When this happens your company will put your property and assets under the official control of someone in the court.
It is possible for you to appeal against your winding-up order, but normally the account that you have your business with will be frozen. You will also have your assets or your property sold by the person who is liquidating your company. If the company isn’t purchased with the intention to continue to run business then any of your employees will lose their positions within your company and there isn’t anything you can do about it.
Of course, there are other things that you can do to help your company to get out debt but normally when you are bankrupt there isn’t much that you can do about it. Your best bet would be to contact your legal advisor to decide on the best course of action.
Reuben Singh became bankrupt when he operated his own company. He fought the bank for the right to settle but lost the case. Eventually, he went on to work with his father.