What You Need to Know About Bankruptcy  

 

If there is one thing that we should strongly shun with all our power and might, it would be bankruptcy. If we do not manage our assets and liabilities properly, we will encounter bankruptcy and we have to trust experts that it will not do us any good.

Dealing with bankruptcy is difficult especially if we are put in the limelight. Perhaps we heard about 50 Cent’s filing of bankruptcy. He may file bankruptcy but it doesn’t mean that he has no money left. He reportedly filed a Chapter 11 bankruptcy protection. According to 50 Cents’ legal team, Chapter 11 will protect 50 Cents’ assets while repaying his creditors. This is so the assets of 50 Cents will be protected if ever it will be liquidated.

50 Cents’ filing of bankruptcy is a move commonly used by other big businesses that permits them to maintain control of their assets. This story is not new here in Singapore. There have been many businessmen who filed for bankruptcy. The Ministry of Law Singapore Insolvency Office gave out few advices for debtors and creditors. Here are some advices:

• For debtors: It is imperative that we do not ignore our creditors. When we file for bankruptcy, we tend to ignore everyone but it may not be the best move. We have to accept everything starting from the Letters of Demand, Statutory Demands, Summons and Writs from the court.

• For creditors: Creditors need to remember that bankruptcy proceedings will not promise full recovery of one’s debts. Bankruptcy proceedings should only be pursued granting that creditors exhausted recovery options.