A small company files for bankruptcy after selling off all its major assets to competitors, but the management principals seemed to have made out OK, and there has been some shredding of accounting records.
2006-11-17 01:12:51 · 3 answers · asked by Rosa 1 in Business & Finance ➔ Small Business
In order to file for bankruptcy they have to show all of the account records. If the company has shredded financial documents they can not file bankruptcy because they can not show proof of financial records.
2006-11-17 02:53:40 · answer #1 · answered by Medical and Business Information 5 · 0⤊ 1⤋
At a guess, they are following some kind of legal advise. They know what is vulnerable after bankruptcy and they know without evidence, they can get away with why the company failed.
If you are owed a debt by them, grab as much evidence as possible ... even if it is shredded.
If you work there, grab as much evidence as possible ... even if it is shredded (it may save your butt if they are looking for someone to blame for lost money).
If you are one of the management looking for anything you forgot ... send me a copy of some accounting files so I can give better advice
2006-11-17 01:33:00 · answer #2 · answered by wizebloke 7 · 0⤊ 0⤋
Every business shreds (or should be shredding). This is not an indication of wrong doing. If they didn't shred then all of the personal information they have collected would end up in the trash.
I wouldn't my employee file to be left in a dumpster.
2006-11-17 04:46:03 · answer #3 · answered by Shred Guy 6 · 0⤊ 0⤋