Declaring Bankruptcy Requires a Bit More

I really enjoy The Office. One of the recurring themes in the show is that Michael Scott is something of an incompetent manager. However, the people working under him manage to do reasonably well in spite of his ineptitude. One of the funnier things that happens in an episode of The Office is that Michael tries to declare bankruptcy by yelling the word at his co-workers.

Well, as you know, there is more to it than that.

When you declare bankruptcy as a business, you need to go through special paperwork and protection. In some cases, if you plan to restructure as part of your plan, you need to submit your ideas for restructuring, and explain how this will make you a stronger company when you emerge from bankruptcy protection. Before deciding to declare bankruptcy, it is important to put some thought into it — and to realize that bankruptcy is not a “free pass”.