Bankruptcy in Brisbane - Will I lose my business if I go bankrupt?

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.