When people in
Wollongong come to me planning to talk about Bankruptcy, they are typically packed 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 very
most routine problems is 'Will I lose my business if I declare bankruptcy?' The
brief answer is no. If you are an owner of a business any shape or size you can
keep your business if you wish to. In Wollongong, businesses that end up being
insolvent have a few options just like liquidation, voluntary administration
and so on. It's people 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 obligations in a business and personal debts
go hand in hand when a business owner declares bankruptcy. There are some
important implications for directors of companies when it pertains to Bankruptcy
in Wollongong: 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 once you're
bankrupt.
A limitation
that applies when you are actually bankrupt as a business owner is that you can
be in your own business as a sole trader only. There are things you should
disclose as an aspect of that but basically you can still run your company. 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 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 Wollongong.
However 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
company, then go bankrupt and then open the doors the next day like practically
nothing had happened. There are laws in place to stop what is called phoenix
companies appearing out of the ashes of an old company.
Having said
that, it's just a matter of speaking to the right people about Bankruptcy. In
this situation you may think you need a liquidator for your company, and you
may be right, but bear in mind that every liquidator is varied and have their
own motives. Liquidators profit from your liquidation - heaps of money - so
just what advice do you believe you will get?
When it comes to
Bankruptcy, I think that giving generic advice in this area is potentially
unsafe as it can have very significant 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 incorrect 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 even though 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 overly upset 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, exactly where to turn and what questions to ask about Bankruptcy,
then feel free to speak with Bankruptcy Experts Wollongong on 1300 795 575, or
visit our website:.bankruptcyexpertsWollongong.com.au.
