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You should not prolong loss-making business operations. A controlled bankruptcy is better than an uncontrolled bankruptcy. There is also no need to be ashamed of a bankruptcy; rather, it should be seen as a learning experience.

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Bankruptcy proceedings

In a bankruptcy, an insolvent and unprofitable company is closed down after a court process.

Phases of bankruptcy proceedings

In bankruptcy proceedings, the debts of your company are determined, its assets sold, and the funds distributed among creditors.

Lapse of bankruptcy and public receivership

A bankruptcy may lapse if there are not enough funds in the bankruptcy estate. It can, however, continue under public receivership.

Bankruptcy creditors

Creditors have the final say in the bankruptcy estate. As a representative of your company, you can take part in creditors’ meetings but cannot vote.

Recovering from bankruptcy

Bankruptcy is the beginning of something new. Learn from it and talk with people to make you feel better. You do not need to be ashamed of it.