When people in
Bunbury come to me trying to talk about Bankruptcy,
they are typically loaded 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 general issues is 'Will
I lose my business if I declare bankruptcy?' The concise answer is no. If you
are a manager of a business any shape or size you can keep your business if you
want to. In Bunbury, businesses that are insolvent have a few options such as
liquidation, voluntary administration and so on. It's individuals who go
bankrupt not businesses.
Bankruptcy is a
complex area so get some professional advice on this one if you have a
business. Generally speaking, the debts in a business and personal debts go
together when a business owner declares bankruptcy. There are a few significant
implications for directors of companies when it pertains to Bankruptcy in Bunbury:
A bankrupt can not be a director of a company, so if you have a pty ltd company
you will likely need to retire as a director as soon as you're bankrupt.
A constraint
that applies when you are generally 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 a part of that but in essence you can still run your business.
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 no
longer trade without that license, so make sure you are asking the appropriate
questions when it comes to licenses and Bankruptcy in Bunbury.
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 rack up heaps of debt in your
company, then go bankrupt and then open the doors the next day like almost
nothing had happened. There are laws in place to prevent what is called phoenix
companies growing out of the ashes of an old company.
Having said
that, it's just an issue of speaking to the right people about Bankruptcy. In
this situation you may think you need a liquidator for your business, and you
might be right, but keep in mind that every liquidator is different 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 unsafe as
it can have very severe implications for directors and business owners. This is
since it is 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 restriction to the size of the business
you run while 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 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, where to turn and what questions to ask about Bankruptcy,
then feel free to call Bankruptcy Experts Bunbury on 1300 795 575, or visit our
website:.bankruptcyexpertsBunbury.com.au.
