When people in
Maitland come to me planning to discuss Bankruptcy,
they are usually filled with questions. The internet is full of information,
but far too much of it is confusing or contradicts itself, so I make it my
mission to try and make it more clear. One of the most commonplace priorities
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 wish to. In Maitland, businesses that end up being insolvent
have a few options for instance liquidation, voluntary administration and so
on. It's people who go bankrupt not companies.
Bankruptcy is a
complicated area so get some expert advice on this one if you have a business.
Generally speaking, the financial obligations in a business and personal debts
go hand in hand when a business owner declares bankruptcy. There are several
vital implications for directors of companies when it pertains to Bankruptcy in
Maitland: 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 once you're
bankrupt.
A limitation
that applies when you are actually bankrupt as a business owner is that you may
be in your very own business as a sole trader only. Generally there are things
you must disclose as an aspect of that but essentially 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 therefore you
can no longer trade without that license, so make sure you are asking the right
questions when it comes to licenses and Bankruptcy in Maitland.
However if your
business is not impacted directly by such issues, then you'll will 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
business, then go bankrupt and then open the doors the next day like not a
thing had happened. There are laws in place to avoid what is called phoenix
companies popping up out of the ashes of an old company.
Having said
that, it's just an issue of talking with the right people about Bankruptcy. In
this situation you may think you need a liquidator for your company, and you
could be right, but bear in mind that every liquidator is distinct and have
their own motives. Liquidators earn money from your liquidation - heaps of
money - so what advice do you believe you will get?
When it comes to
Bankruptcy, I think that giving generic advice in this area is possibly
perilous as it can have very serious implications for directors and business
owners. This is because it is just one of those cases where what the right
advice for one business owner is the incorrect advice for the other. There are
some basics however, that you may benefit from. There is no limitation to the size
of the business you run even though 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 overly stressed 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, precisely where to turn and what questions to ask about Bankruptcy,
then feel free to get in touch with Bankruptcy Experts Maitland on 1300 795
575, or visit our website: .bankruptcyexpertsMaitland.com.au.