September 28, 2020
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It’s time to dispel the common myths about bankruptcy and instead showcase it as an instrumental tool for debt relief. The focus of this blog will be bankruptcy and the benefits it provides for individuals to large corporations trying to get out of debt.
For years very intelligent and successful businessmen and women have been using bankruptcy as a solution to make their companies stronger. Unlike the average person, successful business men and women are exposed to more risks financially. For this reason, they may be faced with the difficult task of filing for bankruptcy more often than your average person. This choice is not easy to make and requires them to be both forthcoming and honest.
Well-known entrepreneur and controversial, Republican nominee for President, Donald Trump used bankruptcy as a solution not once but four times. He has filed bankruptcy to help his companies not only restructure debt but also free up capital. As mentioned in Forbes.com, Trump stated “Basically I’ve used the laws of the country to my advantage and to other people’s advantage just as Leon Black has, Carl Icahn, Henry Kravis has, just as many, many others on top of the business world have.” (Clare O’Connor, Fourth Time’s A Charm: How Donald Trump Made Bankruptcy Work For Him, Forbes.com).
There is a reason several entrepreneurs have turned to bankruptcy to reorganize their debts and create a fresh start for their companies. Here are a few key and important facts to know about bankruptcy:
In reality despite the negative connotation associated with bankruptcy, it’s a smart decision. Individuals and corporations have used bankruptcy as a tool to escape debt and save their companies and personal financial situations. These moguls realize businesses can come out in a better financial standing than before.
Overall, filing for bankruptcy does not mean a business has failed, it does not mean a person can’t fulfill their duties and it does not mean there is a defect in someone’s character. If anything it shows an individual or corporation is ready to make changes and leave the process not only wiser but also in a better financial situation than before. Ultimately bankruptcy gives individuals and corporations a second chance to learn from their mistakes so they don’t make them again in the future.
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