When people in
Townsville come to me wanting to discuss Bankruptcy,
they are always full of questions. The internet has plenty of information, but
far too much of it is baffling or contradicts itself, so I make it my mission
to try and make things more clear. One of the very most normal concerns is
'Will I lose my business if I declare bankruptcy?' The concise answer is no. If
you are a manager of a company any shape or size you can maintain your business
if you would like to. In Townsville, businesses that end up being insolvent
have a few options including liquidation, voluntary administration and so on.
It's individuals who go bankrupt not businesses.
Bankruptcy is a
complex area so get some experienced 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 several significant
implications for directors of companies when it comes to Bankruptcy in
Townsville: A bankrupt can not be a director of a company, so if you have a pty
ltd company you will definitely need to resign as a director after you're
bankrupt.
A constraint
that applies when you are actually bankrupt as a business owner is that you may
be in your own business as a sole trader only. There are things you should 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. Such as, if you run a building company, your
license will be suspended once you're bankrupt and consequently you can not
trade without that license, so make sure you are asking the ideal questions
when it involves licenses and Bankruptcy in Townsville.
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 rack up heaps of debt in your
business, then go bankrupt then open the doors the next day like nothing at all
had happened. There are laws in place to stop what is called phoenix companies
popping up out of the ashes of an old company.
Having said that,
it's just an issue of consulting with the correct people about Bankruptcy. Here
in this situation you may think you need a liquidator for your company, and you
could be right, but remember that every liquidator is unique and have their own
motives. Liquidators profit from your liquidation - heaps of money - so exactly
what advice do you believe you will get?
When it comes to
Bankruptcy, I consider 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 guidance
for one business owner is the inappropriate advice for the other. There are
some fundamentals however, that you may benefit from. There is no reduce to the
size of the business you run while you are bankrupt. You can employ staff. You
can continue to deal with your manufacturers 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 extremely uneasy about what you can and can't do
as a business owner, just get the appropriate 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 Townsville on 1300 795 575, or
visit our website:.bankruptcyexpertsTownsville.com.au.
