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Bankruptcy isn’t supposed to be punitive. A company clearing up the books and then being able to generate a profit again in the future is better for creditors t
by eloisius 6y ago
Bankruptcy isn’t supposed to be punitive. A company clearing up the books and then being able to generate a profit again in the future is better for creditors than destroying the company completely.
- 411111111111111 6y agoWhile true, it does enable some strategies in which you purposely run your company with a deficit while paying yourself a good salary until bankruptcy, with no lasting consequences. And as the previous poster said: you can even "turn the company around" after and pay yourself a massive bonus for making it profitable again.