When people in
Dubbo come to me wanting to discuss Bankruptcy,
they are constantly loaded with questions. The internet has lots of
information, but far too much of it is confusing or contradicts itself, so I
make it my mission to try and make things clearer. One of the most normal
priorities 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 Dubbo, businesses that become insolvent have a
few options like 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 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 a few important
implications for directors of companies when it comes to Bankruptcy in Dubbo: A
bankrupt can not be a director of a company, so if you have a pty ltd company
you will need to resign as a director after you're bankrupt.
A limitation
that applies when you are generally bankrupt as a business owner is that you
can be in your very own business as a sole trader only. There are things you
have to make known as a part of that but in a nutshell you can still run your
business. 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 as a
consequence you can not trade without that license, so make sure you are asking
the appropriate questions when it comes to licenses and Bankruptcy in Dubbo.
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 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
growing out of the ashes of an old business.
Having said
that, it's just an issue of consulting with the suitable people about Bankruptcy.
Here in this situation you may think you need a liquidator for your business,
and you might be right, but bear in mind that every liquidator is distinct and
have their own motives. Liquidators make money from your liquidation - heaps of
money - so just what advice do you think you will get?
When it comes to
Bankruptcy, I think that giving generic advice in this area is likely perilous
as it can have very considerable implications for directors and business
owners. This is since it is just one of those cases where what the right advice
for one business owner is the wrong advice for the other. There are some
fundamentals however, that you may benefit from. There is no limitation to the
size of the business you run when you are bankrupt. You can employ staff. You
can constantly 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 too worried 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 reach out to Bankruptcy Experts Dubbo on 1300 795 575, or
visit our website: .bankruptcyexpertsDubbo.com.au.
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