Please read on, as there are lessons for bankruptcy, liquidation, and administration. We put a formal plan that may include one of the insolvency processes. This is done by having DECISIONS such as bankruptcy, liquidation etc., can often mean drawing a line. And moving forward with a new plan.
The new plan needs to come first, not just the bankruptcy.
The plan is your strategy for what we must do in business or work to have a future.
A strategy is a high-level, overarching plan or approach designed to achieve a specific goal or objective. It involves choosing the direction you want to take and the general methods you will use to get there.
Bankruptcy is primarily a legal and financial concept, and whether it is “bad for the soul and the spirit” is a subjective question that can vary greatly depending on individual beliefs, values, and circumstances.
It also depends on if you have a plan to go forward.
A tactic is a specific action, manoeuvre, or method to implement a strategy or achieve a short-term goal. Tactics are the practical steps taken to execute a strategy.
Therefore, we see bankruptcy, liquidation or administration as part of the plan. It’s something we help you with to get where you are going.
Let’s talk about some aspects of bankruptcy.
How did you get here, and how ill do you feel?
Bankruptcy often arises from significant financial distress, leading to stress, anxiety, and other negative emotions. These emotional challenges can affect one’s well-being, including emotional and mental state.
In our experience, the impact is reduced if you move forward with a plan.
Stigma and Shame: In some cultures, and societies, a stigma might be associated with bankruptcy that could lead to feelings of shame or failure. This societal pressure could impact a person’s self-esteem and sense of worth.
Simple, don’t tell anyone. Having the go-forward plan off and running first is always best.
Fresh Start: From another perspective, bankruptcy can give individuals or businesses a fresh financial start. It can relieve the burden of overwhelming debt and offer an opportunity to rebuild their financial lives. This sense of relief and a chance for a new beginning could positively affect one’s outlook and mental well-being.
We see this a lot; get rid of the burden, and move forward, though always take time out to have a councillor to check where your health is with this action.
Learning and Growth: Experiencing financial challenges, including bankruptcy, can lead to personal growth, resilience, and a deeper understanding of financial management. These experiences may contribute to a sense of inner strength and wisdom.
If you haven’t learned from the experience, your new plan may have problems. Changing business and personal cultural habits or at least examining them is vital.
Spiritual and Philosophical Views: Some people might view bankruptcy as a test of character, a lesson in humility, or an opportunity to reassess their values and priorities. Spiritual and philosophical beliefs can significantly affect how individuals perceive and respond to challenging situations like bankruptcy.
If you feel this will be challenging, you need counselling and help.
Impact on Relationships: Bankruptcy can affect personal relationships, including family, friends, and business partners. The strain on relationships could impact one’s emotional well-being.
This is a time for honesty with those around you. They must know what you are doing, what you are doing to get “going”, and they can then support you.
Whether bankruptcy is perceived as “bad for the soul and the spirit” depends on the individual’s perspective, coping mechanisms, and support systems.
Your Business Angels can give you professional advice, help you with your future business plans, and set the path with significant accounting and support. We manage the relationship with the insolvency practitioner with you, so there are no horrible surprises.