When people in
Sunshine Coast come to me seeking to talk about Bankruptcy, they are usually filled with 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 things more clear. One of the most
general problems is 'Will I lose my business if I declare bankruptcy?' The
short answer is no. If you are an owner of a company any shape or size you can
keep your business if you want to. In Sunshine Coast, businesses that end up
being insolvent have a few options for example, liquidation, voluntary
administration and so on. It's individuals who go bankrupt not companies.
Bankruptcy is a
complicated area so get some qualified advice on this if you have a business.
Generally speaking, the financial obligations in a business and personal debts
go together when a business owner declares bankruptcy. There are some important
implications for directors of companies when it comes to Bankruptcy in Sunshine
Coast: A bankrupt can not be a director of a company, so if you have a pty ltd
company you will definitely need to retire as a director after you're bankrupt.
A limitation
that applies when you are actually bankrupt as a business owner is that you may
be in your very own business as a sole trader only. Certainly there are things
you will need to reveal as a part of that but generally you can still run your
company. For some business owners, bankruptcy affects their ability to run the
business because of the licensing issues. As an 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 Sunshine
Coast.
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 then open the doors the next day like practically
nothing had happened. There are laws in place to stop what is called phoenix
companies appearing out of the ashes of an old company.
Having said
that, it's just a point of speaking to the suitable people about Bankruptcy. In
this situation you may think you need a liquidator for your company, and you
could be right, but keep in mind that every liquidator is different and have
their own motives. Liquidators earn money 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 likely risky as
it can have very considerable implications for directors and business owners.
This is since it is one of those cases where what the right advice for one
business owner is the wrong advice for the other. There are some basics
however, that you may benefit from. There is no reduce to the size of the
business you run though you are bankrupt. You can employ staff. You can
continue to deal with your providers 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 stressed about what you can and can't do
as a business owner, just get the appropriate advice ... If you would like to
learn more about what to do, precisely where to turn and what questions to ask
about Bankruptcy, then feel free to call Bankruptcy Experts Sunshine Coast on
1300 795 575, or visit our website: .bankruptcyexpertsSunshineCoast.com.au.
