Liquidating the business yourself has several advantages over filing a Chapter 7 bankruptcy on its behalf.
When you file a business Chapter 7 bankruptcy, the bankruptcy trustee takes over the entire liquidation process.
NEW DELHI—In a centuries-old gold bazaar, Sanjay Malhotra peers through a magnifying lens at a dull gold necklace resting on a small bed of red velvet.
Such old possessions are streaming into his shop of late, a tip-off to a significant change afoot in one of the world’s largest gold markets.
You can usually sell the company’s assets for more money than the bankruptcy trustee would get for them, and may be able to pay off all your creditors.
“There are a lot of people who have been coming to sell their gold these days. Malhotra said, noting that customers have been trading items as small as nose pins.
Gold holds a special place in India, which vies with China as the world’s top gold consumer.
But with prices sky high, many Indians have decided it is time to sell the family jewels.So much recycled gold has come into the system in the past few months that it has met 45% to 60% of the local gold demand, said Bachhraj Bamalwa, director of All India Gems and Jewellery Trade Federation.Farmers have been cashing in on gold’s soaring price—up about 22% since the start of the year—to buy extra seed in a year that, true to forecasts, delivered unusually bountiful rains.Other rural Indians have piled into gold shops to sell at an unusually fast clip as well.
Liquidating your business outside of bankruptcy can give you more control over the process and provide many additional benefits.
Read on to learn more about what to consider when liquidating your business and negotiating with creditors.