Question

Laws for Accountants

How will a state and /or federally mandated requirement for late payments not to be considered late impact the bankruptcy laws? What about the many businesses that have been required to close-should there be some consideration given to that fact when many of these business file for bankruptcy? What about those who lose their jobs because their businesses are required to close? What does this do to their lenders and their banks?

Answer 1

1. state or federally mandated requirement for late payments not to be considered late impact the bankruptcy law as they are payments to the statutory requirements if the company and comes under government dues and to be paid preferably when consideration for bankruptcy laws

2. many businesses that have been required to close, there must be some consideration given to that fact when many of these business file for bankruptcy and must have been waived off the late payments as they are severely facing the heat already and late payments are a kind of extra burden to them .

3. Those who lose their jobs because of the closure of the business must be compensated with job security schemes and should be provided with same job in some other operational businesses through intervention of government.

4. This left with less payment to be made to their lenders and late payment diminishes the overall repayment ability of the business.