One of the most significant concerns we get when it comes to Bankruptcy is if you can lose your business if you declare bankruptcy. The short answer is no, you are unlikely to lose your small business except if you want to.
When it relates to Bankruptcy, if you are a manager of a company any kind of shape or size you can retain your business if you want to, typically a failing business can push someone into insolvency, so taking into account those situations it could be better to let the business go. In Taree, businesses that become insolvent have a number of options like liquidation, voluntary administration etc. So bear in mind that it is individuals who declare bankruptcy not businesses.
Bankruptcy is a complicated aspect so obtain some professional advice on this one, particularly if you have a business. Generally speaking, the financial debts in a business and personal debts go together when a business owner declares bankruptcy.
Are you a company Director?
There are a few crucial implications for directors of companies when it relates to Bankruptcy in Taree: if you are bankrupt you can not be a director of a company – so this implies that if you have a pty ltd company you definitely will need to resign as a director once you’re insolvent.
For some business owners, personal bankruptcy effects their ability to manage the business due to the licensing issues. Such as, 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 the right inquiries when it comes to licenses and Bankruptcy in Taree.
Having said that if your business is not impacted directly by such concerns, then you’ll need to restructure the way you run your business. There are points to consider when and if you declare bankruptcy as a business owner: you can not get loads of financial debt in your business, then go bankrupt and after that open the doors the following day like not a single thing had happened. There are laws in place to impede what is known as phoenix companies appearing out of the ashes of an old company.
Having said that, it’s just an issue of consulting with the right people about Bankruptcy. As an example, one of the most typical assumptions is that you need to have a liquidator. However most of the time you are going to come across this from a liquidator who stands to make a significant commission- so beware with precisely where you acquire recommendations from and be careful about people who may have their own agendas.
An essential thing to keep in mind with Bankruptcy is to be mindful of general or simple methods to your business and Bankruptcy since each business is going to be varied, and if you are not cautious there could be some substantial implications. Often the right support for one business owner is the wrong guidance for the other. There are a few essentials nonetheless, that you may benefit from. There is no compulsory 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 circumstances, the main one being you will need to meet the payment terms agreed upon because of your insolvency.
So when it comes to Bankruptcy, don’t get too overwhelmed about what you can and can’t do as a business owner, just get the advice that is right for your situation. If you wish to learn more about what to do, where to turn and what queries to ask about Bankruptcy, then do not hesitate to seek advice from Bankruptcy Experts Taree on 1300 795 575, or visit our website: www.bankruptcyexpertstaree.com.au.