1. Apply for bankruptcy protection: The company can apply for bankruptcy protection to the court to ensure the interests of creditors and have the opportunity to restructure or liquidate. Bankruptcy protection can provide time and space for companies to solve financial problems.
2. Restructuring: If the company still has business potential, it can consider restructuring to solve the debt problem. This may include rescheduling debts, reducing costs, divesting unnecessary assets or making other strategic adjustments.
3. Liquidation: If the company has no business potential or cannot be reorganized, liquidation may be the only option. This means that the company will be closed and its assets will be sold to repay creditors. The liquidation procedure shall be conducted according to the laws of the country or region where the company is located.
When a company as a legal person is unable to repay its debts and faces bankruptcy, the impact on its children.
1. Tuition and education expenditure: Bankruptcy may lead to family financial difficulties, which may put pressure on children's tuition and education expenditure. Families may not be able to afford private schools or higher education, which may affect their children's educational opportunities.
2. Quality of life and economic stability: Bankruptcy may affect the quality of life of families. Families may cut expenses and lower their living standards, resulting in a decline in the quality of life of their children. In addition, the family's economic stability may be affected, which may bring insecurity and anxiety to children.
3. Social activities and experiences: Due to financial difficulties, families may not be able to support their children to participate in some social and extracurricular activities, such as sports teams, music classes and summer camps. This may limit children's social and personal development opportunities.