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Funding a business
Is It A Good Idea To Finance A Bankrupt Company?
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[QUOTE="Good-Guy, post: 210874, member: 29109"] There are many experts who have defined the term "bankruptcy". When we read the word "Bankrupt", we get the idea that a person or a business organization was doing pretty good in the previous stages of its business, but due to some unfavorable financial conditions, the company became poor. In simple words, the easiest definition of bankruptcy is a total inability of an individual or a firm to pay off their loans or any kind of debts that are binding on the company. When a company files for bankruptcy, they tend to declare a legal statement in the court that they would no longer be able to pay the debts and they would become defaulter in the process. There are many companies that went bankrupt during the Covid-19 pandemic due to extreme recession faced by the world economy and only a very small number of companies managed to survive. Most of the companies were quite big ones. However, I have always wondered if it would be a good idea to think about investing in bankrupt companies. In the past, there have been many instances when the bankrupt companies actually came back into the market and recovered really well in an exceptional way. What do you think? [/QUOTE]
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