Insolvency, according to AABRS, is described as a state that denotes the inability of an individual or organization to meet its obligations and liabilities as they mature. It is no doubt a very terrifying and alarming position to be in. Not only will it entail hard work and maybe even some luck but it will also require one to act fast otherwise creditors can step forward and enforce an iron hand or what we call a winding up petition.
Now we said that battling it is tough but nobody mentioned that it’s impossible. There are methods to turn the table around and rise out of insolvency. To help individuals and businesses do that, we’ve listed down some mantras to give everyone a little push and encouragement.
“It’s now or never.”
One of the crucial ways to survive insolvency is to act fast. Time is of the essence so individuals and organizations must see to it that no second or minute is wasted. Options must be weighed immediately and the circumstances of the case assessed to determine the best solution to be undertaken.
“This is not the end.”
Positivity or optimism may not solve the dilemma alone but it can do a lot to aid in its achievement. Many people tend to give up at the mention of a threat alone which should not be the case. The presence of risks does not necessarily denote demise. Besides, insolvency is not the final straw yet so never give up.
“Let’s sort things out.”
When one finds out about the financial dilemma, creditors must not be kept in the dark. Their calls and scheduled meetings should not be dodged as these would only raise red flags to them. Instead, talk it out and try to establish an agreement. Many creditors are willing to extend or revise the terms of the contract to make sure that they get paid in full or as best as possible. A winding up petition may put an insolvent entity to a close but it’s no guarantee that creditors shall be paid in full or even enough. They’ll listen.
“I need help.”
There is no ‘I’ in team especially when we’re talking about corporate insolvency, says AABRS. Owners must make sure that the right professionals are gathered to tackle on the problem. As a matter of fact, a qualified insolvency practitioner must be hired to facilitate and aid in the solution finding.