|
Bankruptcy laws are extremely stringent throughout the world and every country has its own laws of bankruptcy that govern the corporate world of business. In most of the countries, and especially in the United States of America, while bankruptcy laws are specially designed to bail out companies that are hemmed all around with colossal business debts owed by them to the creditors. Corporate companies in the US accumulate debits worth billions and trillions of dollars without any resources available for repayment of their loan amounts. This nonpayment of loan amounts triggers a situation leaves both the creditors and the debtors with cold feet. With creditors blowing hot and cold over the debtors, they are left with hardly any option but to move the court demanding repayment of their loan amounts along with penal interest and damages. On the other hand, the beleaguered companies who have in turn become debtors also knock on the court to file their petition for bankruptcy under Chapter 7 of the bankruptcy laws to declare their company bankrupt and obtain exemption from repayment of loans. While there may be genuine companies who find themselves on the threshold of bankruptcy and seek alleviation from the court of law from repayment of their enormous loans, there are however some companies who opt to declare themselves bankrupt in order that they do not have any intention of repaying their loan amounts to their creditors. Most of these companies adopt fraudulent measures to evade repayment of their heavy loan amounts and get rid of their loan amounts. The stringency of the bankruptcy laws in the state of Minnesota attracts imposition of heavy penalties on these defrauding companies who indulge in transferring huge amounts into their personal accounts and availing the benefit of declaring themselves bankrupt.The imposition of penalties depends on the gravity of the fraud on the part of the company. The bankruptcy laws of the state of Minnesota therefore consider it mandatory to verify the financial status of the company through auditing their books of accounts, profit and loss account and other documents such as the balance sheet produced before them by a Minnesota bankruptcy lawyer granting them the status of bankruptcy.
Related Articles -
Minneapolis Bankruptcy Lawyer, Minneapolis Bankruptcy Attorney, Minnesota Bankruptcy Lawyer, Minnesota Bankruptcy Attorney,
| 
