When people in
Port Macquarie come to me hoping to discuss Bankruptcy, they are constantly filled with questions. The internet
has lots of information, but far too much of it is baffling or contradicts
itself, so I make it my mission to try and make it more clear. One of the most
typical troubles is 'Will I lose my business if I declare bankruptcy?' The
concise answer is no. If you are an owner of a business any shape or size you
can maintain your business if you want to. In Port Macquarie, 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 companies.
Bankruptcy is a
complex area so get some qualified advice on this if you have a business.
Generally speaking, the financial debts in a business and personal debts go
together when a business owner goes bankrupt. There are a few significant
implications for directors of companies when it pertains to Bankruptcy in Port
Macquarie: 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 constraint
that applies when you are 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
need to reveal as a part of that but basically you can still run your business.
For some business owners, bankruptcy affects their ability to run the business
because of the licensing issues. For instance, 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 concerns licenses and Bankruptcy in Port Macquarie.
But if your
business is not impacted directly by such issues, then you'll have 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 then open the doors the next day like virtually
nothing had happened. There are laws in place to avoid what is called phoenix
companies growing out of the ashes of an old business.
Having said
that, it's just a point of speaking to the right people about Bankruptcy. In
this situation you may believe you need a liquidator for your company, and you
might be right, but keep that in mind every liquidator is distinct and have
their own motives. Liquidators make money from your liquidation - heaps of
money - so just what advice do you believe you will get?
When it comes to
Bankruptcy, I believe that giving generic advice in this area is potentially
dangerous as it can have very serious implications for directors and business
owners. This is due to the fact that it is one of those cases where what the
right guidance for one business owner is the wrong 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 when you are bankrupt. You can employ staff.
You can constantly deal with your vendors 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 confused about what you can and can't do
as a business owner, just get the best advice ... If you would like to learn
more about what to do, exactly where to turn and what questions to ask about Bankruptcy,
then feel free to contact Bankruptcy Experts Port Macquarie on 1300 795 575, or
visit our website: .bankruptcyexpertsPortmacquarie.com.au.
