Common Causes of Bankruptcy In The Philippines

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Recommended: Chapters 7 versus 13 bankruptcies

In this dissertation, we focus on a certain chosen topic of bankruptcy, including the causes of being state of insolvency of the business, effects and formation, and some discussion regarding to the law that had implemented here in our country.

Bankruptcy is define as the state of completely lacking in a particular quality value. Being bankrupt is a very serious matter. A person must hand over their estate, including their home to their trustee. If they were unable or unwilling to pay, they may declare bankruptcy. You will be force to risk anything that you own on your business to dissolve all your debts and your losses in your company.

It’s the legal status for an individual or company unable to pay off outstanding debt. It is a status that can only be granted by a state or federal court. Bankruptcy will negatively affect your credit and future ability to use money. It may prevent or delay foreclosure on a home and repossession of a car. It can also stop wage garnishment and other legal actions of creditors attempting to collect debts.

We conducted several studies trough the use of books and Accounting journals referring to the causes and formation of this crisis. There many aspects that had been consider why a business leads into bankruptcy. Base from we had searched there are some companies that are voluntarily declaring that the business has been bankrupt for some reasons. One of the reasons why a business declares bankruptcy is the low demand of sale and revenue.

There are many factors why a certain business or company leads into bankruptcy. Some of the causes is that the expenses are higher than the capital of company. Capital is one of the most important concepts in banking. Capital is the amount of cash and othe...

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...researched, we merged all the details in the most synchronize way to produce a vivid study about this research.

Works Cited

Nilsen, Kim., “Keeping Fraud in the Cross Hairs”. American Institute of Accountants, Inc., 2010, pp.20-27.
Singleton, Tommie, ”Guard Against Cyber theft”. American Institute of CPA, Inc. 2006, pp.33-35.
Schamotta, Justin, “ Philippine Laws on Bankruptcy”. Rertrieved from http://www.ehow.com/list_6635219_philippine-laws-bankruptcy.htm.
Bulkat, Baran, “Which Type of Bankruptcy Should You File? Chapter 7 vs. 13”. Retrieved from www.alllaw.com/articles/nolo/bankruptcy/which-type-chapter-7-chapter-13.html.
“Aman Future Scam Connection”. June 25, 2013,retrieved from http://newsinfo.inquirer.net/43.639/the-aman-futures-scam-connection.
“Enron Corporation”. Retrieved from https://www.uwosh.edu/llce/conted/lir/course-listings/Enron%20Scandal.pdf.

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