When people in
Bundaberg come to me planning to talk about Bankruptcy, they are typically full
of questions. The internet is full of information, but far too much of it is
confusing or contradicts itself, so I make it my mission to try and make it
clearer. One of the most typical priorities is 'Will I lose my business if I
declare bankruptcy?' The concise answer is no. If you are a manager of a
business any shape or size you can keep your business if you want to. In
Bundaberg, businesses that end up being insolvent have a few options for
example, liquidation, voluntary administration and so on. It's people who go
bankrupt not businesses.
Bankruptcy is a
complicated area so get some qualified advice on this one if you have a
business. Generally speaking, the financial obligations in a business and
personal debts go hand in hand when a business owner goes bankrupt. There are
some important implications for directors of companies when it pertains to Bankruptcy
in Bundaberg: A bankrupt can not be a director of a company, so if you have a
pty ltd company you will need to resign as a director once you're bankrupt.
A restriction
that applies when you are bankrupt as a business owner is that you can be in
your very own business as a sole trader only. Certainly there are things you
must disclose as an aspect of that but effectively you can still run your
company. For some business owners, bankruptcy impacts their ability to run the
business because of the licensing issues. For instance, if you run a building
company, your license will be suspended once you're bankrupt and therefore you
can not trade without that license, so make sure you are asking the ideal
questions when it comes to licenses and Bankruptcy in Bundaberg.
However if your
business is not impacted directly by such issues, then you'll need to
restructure the way you run your business. There are considerations when and if
you go bankrupt as a business owner: you can not acquire heaps of debt in your
business, then go bankrupt and then open the doors the next day like
practically nothing had happened. There are laws in place to stop what is
called phoenix companies popping up out of the ashes of an old business.
Having said
that, it's just a point of talking to the best people about Bankruptcy. In this
circumstance you may believe you need a liquidator for your business, and you
could be right, but keep that in mind every liquidator is unique and have their
own motives. Liquidators make money from your liquidation - heaps of money - so
exactly what advice do you think you will get?
When it comes to
Bankruptcy, I believe that giving generic advice in this area is potentially
perilous as it can have very significant implications for directors and
business owners. This is due to the fact that it is just one of those cases
where what the right advice for one business owner is the wrong advice for the
other. There are some principles however, that you may benefit from. There is
no limitation to the size of the business you run when you are bankrupt. You
can employ staff. You can continue to deal with your vendors under certain
conditions, the main one being you will need to meet the payment terms agreed
upon.
So when it
concerns Bankruptcy, don't get overly worried about what you can and can't do
as a business owner, just get the best advice ... If you need to learn more
about what to do, where to turn and what questions to ask about Bankruptcy,
then feel free to speak with Bankruptcy Experts Bundaberg on 1300 795 575, or
visit our website: .bankruptcyexpertsBundaberg.com.au.
