One of the most significant questions we get when it comes to Bankruptcy is if you will lose your business if you declare bankruptcy. The short answer is no, you are probably not going to lose your small business except if you need to.
When it relates to Bankruptcy, if you are a manager of a company any shape or size you can retain your business if you want to, often a failing company can push an individual into bankruptcy, so in light of those circumstances it might be best to allow your business go. In Emerald, businesses that become bankrupt have a number of alternatives like liquidation, voluntary administration etc. So remember that it is people who declare bankruptcy not businesses.
Bankruptcy is a complicated aspect so obtain some professional suggestions on this one, especially if you have a business. Generally speaking, the monetary liabilities in a business and individual debts go together when a business owner declares insolvency.
Are you a company Director?
Certainly there are a few essential implications for directors of companies when it concerns Bankruptcy in Emerald: if you are insolvent you can not be a director of a company – so this implies that if you have a pty ltd company you definitely will be required to retire as a director as soon as you’re bankrupt.
For some business owners, personal bankruptcy impacts their ability to operate the business due to the licensing matters. For example,, if you manage a building business, your license will be suspended once you’re insolvent and consequently you can not trade without that license, so be sure you are asking about the right questions when it comes to licenses and Bankruptcy in Emerald.
However if your business is not affected directly by such issues, then you’ll want to restructure the manner in which you operate your business. There are factors to consider when and if you declare bankruptcy as a business owner: you can not acquire loads of financial debt in your business, then go bankrupt and after that open the doors the next day like not a single thing had occurred. There are laws in place to put a stop to what is named phoenix companies showing up out of the ashes of an old company.
Having said that, it’s just an issue of speaking with the right people about Bankruptcy. For example, some of the most typical presumptions is that you really need a liquidator. However a lot of the time you are going to hear this from a liquidator who stands to gain a big commission- so beware with exactly where you acquire guidance from and be careful about people who may have their own agendas.
An essential thing to consider with Bankruptcy is to be cautious of general or simple strategies to your business and Bankruptcy since each business is going to be varied, and if you are not careful there could be some significant implications. Commonly the right guidance for one small business owner is the wrong tips for the other. There are some fundamentals nonetheless, that you may benefit from. There is no mandatory reduction in the size of your business when you are bankrupt. You can continue to employ and find new staff. And you can easily continue to deal with your suppliers under certain situations, the main one being you will need to satisfy the payment terms agreed upon in light of your bankruptcy.
So when it comes to Bankruptcy, don’t get overly confused concerning what you can and can’t do as a business owner, just get the suggestions that is right for your situation. If you want to find out more about what to do, where to turn and what concerns to ask about Bankruptcy, then feel free to seek advice from Bankruptcy Experts Emerald on 1300 795 575, or visit our website: www.bankruptcyexpertsemerald.com.au.