11 Warning Signs of a Commercial Bankruptcy
Do you own a company affected by financial problems (lack of liquidity, over-indebtedness, etc.)? At Bernier & Associates, authorized insolvency trustee, we have customized solutions to offer to our clients in Gatineau and elsewhere in Quebec and Ontario. To protect yourself from a commercial bankruptcy, it is important to be on the lookout for signs of difficulties. Read on to discover them!
It is quite rare for financial problems to occur suddenly. In order to act in time to prevent bankruptcy, here are some clues to observe:
- Negative budget over an extended period;
- Frozen bank accounts;
- Shift in production;
- Difficulties or inability to pay your suppliers;
- Decrease in business volume;
- Doubts about profit prospects (by directors or investors);
- Lack of capital to relaunch the company;
- Loss of major customers;
- Refusal of loans by your financial institution;
- Late payment of taxes and deductions at source;
- Use of a line of credit to cover your current expenses.
Consult a authorized insolvency trustee: a wise choice!
In a precarious financial situation, going to an authorized insolvency trustee is the assurance of using a professional with the necessary skills to help you. Since he or she is familiar with the laws (such as the Bankruptcy and Insolvency Act), he or she will be able to explain your responsibilities as a director and the protections to which you are entitled.
After informing you of your options, your authorized insolvency trustee will create a management plan in accordance with your wishes. He will act as quickly as possible to represent you before creditors and free you from the burden of your debts. Depending on your intentions and objectives, it can help you turn your finances around so that you can keep all or part of your business.
If you choose to go into commercial bankruptcy, your advisor will supervise the end of the company's operations and then conduct an orderly liquidation of the company and its assets. In addition, it will ensure that the profits of the sale are properly allocated, in accordance with the process governed by law, and that the proceedings of unsecured creditors are suspended. Only an authorized insolvency trustee can legally manage a bankruptcy.
At Bernier & Associates, authorized insolvency trustee, we have the skills to guide you through the options surrounding commercial bankruptcy, whether your company is located in Gatineau or elsewhere in Quebec or Ontario. Contact us for more information!