Amongst the biggest questions we get when it comes to Bankruptcy is if you may lose your business if you declare bankruptcy. The short answer is no, you are probably not going to lose your small business unless you want to.
When it relates to Bankruptcy, if you are a manager of a company any shape or size you can keep your business if you want to, often a failing company can pressure someone into bankruptcy, so in light of those circumstances it may be better to let the business go. In Gold Coast, enterprises that become bankrupt have a couple of options like liquidation, voluntary administration and so on. So keep in mind that it is people who declare bankruptcy not companies.
Bankruptcy is a complicated area so get some qualified advice 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 bankruptcy.
Are you a company Director?
Certainly there are a few crucial implications for directors of companies when it relates to Bankruptcy in Gold Coast: if you are bankrupt you can not be a director of a company – so this means that if you have a pty ltd company you absolutely will need to retire as a director once you’re insolvent.
For some business owners, insolvency impacts their capability to run the business because of the licensing matters. For example,, if you manage a building company, your license will be put on hold once you’re bankrupt and consequently you can not trade without that license, so make sure you are asking about the right inquiries when it comes to licenses and Bankruptcy in Gold Coast.
Having said that if your business is not affected directly by such issues, then you’ll need to reorganize the way you run your business. There are considerations when and if you declare bankruptcy as a local business owner: you can not acquire heaps of financial debt in your business, then go bankrupt and subsequently open the doors the following day as if not a single thing had occurred. There are laws in place to stop what is known as phoenix companies appearing out of the ashes of an old company.
Having said that, it’s just an issue of seeking advice from the right people about Bankruptcy. For example, one of the most common assumptions is that you really need a liquidator. But most of the time you are going to come across this from a liquidator who stands to earn a huge payment- so beware with where you get assistance from and be careful about other people who might have their own agendas.
An important thing to bear in mind with Bankruptcy is to be careful of basic or simple strategies to your business and Bankruptcy since each business is going to be different, and if you are not cautious there could be some significant ramifications. Commonly the right guidance for one small business owner is the wrong advice for the other. There are some essentials however, that you may benefit from. There is no obligatory reduction in the size of your business when you are bankrupt. You can continue to recruit and hire new personnel. And you can easily continue to deal with your distributors under certain circumstances, the main one being you will need to meet the payment terms agreed upon in light of your insolvency.
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 assistance that is right for your scenario. If you would like to learn more about what to do, where to turn and what questions to ask about Bankruptcy, then do not hesitate to seek advice from Bankruptcy Experts Gold Coast on 1300 795 575, or visit our website: www.bankruptcyexpertsgoldcoast.com.au.