When people in
Brisbane come to me planning to talk about Bankruptcy,
they are usually 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 it clearer. One of the very most general matters is 'Will I
lose my business if I declare bankruptcy?' The short answer is no. If you are
an owner of a business any shape or size you can maintain your business if you
wish to. In Brisbane, businesses that end up being insolvent have a few options
such as liquidation, voluntary administration and so on. It's people who go
bankrupt not businesses.
Bankruptcy is a
complicated area so get some expert advice on this one if you have a business.
Generally speaking, the financial debts in a business and personal debts go
hand in hand when a business owner goes bankrupt. There are some essential
implications for directors of companies when it comes to Bankruptcy in
Brisbane: A bankrupt can not be a director of a company, so if you have a pty
ltd company you definitely will need to retire as a director soon after you're
bankrupt.
A restriction
that applies when you are actually bankrupt as a business owner is that you can
be in your very own business as a sole trader only. Generally there are things
you have to make known as an aspect of that but in essence you can still run
your company. For some business owners, bankruptcy impacts 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 as a
consequence you can not trade without that license, so make sure you are asking
the ideal questions when it concerns licenses and Bankruptcy in Brisbaane.
On the other
hand 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 company, then go bankrupt and after that open the doors the next day like
absolutely nothing had happened. There are laws in place to stop what is called
phoenix companies growing out of the ashes of an old company.
Having said
that, it's just a matter of consulting with the suitable people about Bankruptcy.
Here in this circumstance you may believe you need a liquidator for your
business, and you might be right, but keep that in mind every liquidator is
distinct and have their own motives. Liquidators profit from your liquidation -
heaps of money - so what advice do you think you will get?
When it comes to
Bankruptcy, I think that giving generic advice in this area is potentially
dangerous as it can have very severe implications for directors and business
owners. This is since it is one of those cases where what the right guidance
for one business owner is the inappropriate advice for the other. There are
some basics however, that you may benefit from. There is no restriction to the
size of the business you run while you are bankrupt. You can employ staff. You
can continue to deal with your distributors 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 extremely worried about what you can and can't do as a
business owner, just get the right 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 contact Bankruptcy Experts Brisbane on 1300 795 575, or visit our
website:.bankruptcyexpertsBrisbane.com.au.
