When people in
Gladstone come to me seeking to talk about Bankruptcy,
they are constantly full of questions. The internet has plenty of information,
but far too much of it is confusing or contradicts itself, so I make it my
mission to try and make things more clear. One of the very most simple concerns
is 'Will I lose my business if I declare bankruptcy?' The quick answer is no.
If you are an owner of a company any shape or size you can maintain your
business if you would like to. In Gladstone, businesses that become insolvent
have a few options just like liquidation, voluntary administration and so on.
It's people who go bankrupt not companies.
Bankruptcy is a
complex area so get some experienced advice on this one if you have a business.
Generally speaking, the debts in a business and personal debts go hand in hand
when a business owner declares bankruptcy. There are a few vital implications
for directors of companies when it comes to Bankruptcy in Gladstone: A bankrupt
can not be a director of a company, so if you have a pty ltd company you will
likely need to resign as a director as soon as you're bankrupt.
A constraint
that applies when you are actually bankrupt as a business owner is that you can
be in your own business as a sole trader only. Generally there are things you
will want to disclose as an aspect of that but in a nutshell you can still run
your business. For some business owners, bankruptcy affects their ability to
run the business because of the licensing issues. For example, if you run a
building company, your license will be suspended once you're bankrupt and
therefore you can no longer trade without that license, so make sure you are
asking the appropriate questions when it comes to licenses and Bankruptcy in
Gladstone.
But if your
business is not impacted directly by such issues, then you'll will 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 after that open the doors the next day like not
a thing had happened. There are laws in place to avoid what is called phoenix
companies appearing out of the ashes of an old company.
Having said
that, it's just a point of speaking with the best people about Bankruptcy. In
this situation you may believe you need a liquidator for your business, and you
could be right, but remember that every liquidator is varied and have their own
motives. Liquidators profit from your liquidation - heaps of money - so what
advice do you believe you will get?
When it comes to
Bankruptcy, I think that giving generic advice in this area is essentially
perilous as it can have very significant implications for directors and
business owners. This is because it is just one of those cases where what the
right guidance for one business owner is the wrong advice for the other. There
are some basics 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 companies under certain conditions, the main
one being you will need to meet the payment terms agreed upon.
So when it comes
to Bankruptcy, don't get overly stressed about what you can and can't do as a
business owner, just get the appropriate advice ... If you wish to learn more
about what to do, where to turn and what questions to ask about Bankruptcy,
then feel free to consult Bankruptcy Experts Gladstone on 1300 795 575, or
visit our website: .bankruptcyexpertsGladstone.com.au.
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