When people in
Geraldton come to me seeking to talk about Bankruptcy,
they are usually packed with questions. The internet has lots of information,
but far too much of it is confusing or contradicts itself, so I make it my
mission to try and make things more clear. One of the most routine troubles is
'Will I lose my business if I declare bankruptcy?' The concise answer is no. If
you are an owner of a business any shape or size you can maintain your business
if you would like to. In Geraldton, businesses that eventually are insolvent
have a few options just like liquidation, voluntary administration and so on.
It's individuals who go bankrupt not businesses.
Bankruptcy is a
complicated area so get some qualified 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 goes bankrupt. There are a
few vital implications for directors of companies when it pertains to Bankruptcy
in Geraldton: 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 soon after
you're bankrupt.
A limitation
that applies when you are bankrupt as a business owner is that you may be in
your own business as a sole trader only. There are things you must make known
as an aspect of that but generally you can still run your company. 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 therefore you can no longer trade
without that license, so make sure you are asking the ideal questions when it
involves licenses and Bankruptcy in Geraldton.
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
business, then go bankrupt then open the doors the next day like practically
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 a point of speaking with the suitable people about Bankruptcy. Here
in this circumstance you may believe you need a liquidator for your business,
and you might be right, but bear in mind that every liquidator is varied and
have their own motives. Liquidators make money from your liquidation - heaps of
money - so what advice do you think you will get?
When it comes to
Bankruptcy, I consider that giving generic advice in this area is likely risky
as it can have very severe implications for directors and business owners. This
is since it is just one of those cases where what the right guidance for one
business owner is the inappropriate advice for the other. There are some basics
however, that you may benefit from. There is no reduce to the size of the
business you run though 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
concerns Bankruptcy, don't get extremely upset about what you can and can't do
as a business owner, just get the right advice ... If you wish to learn more
about what to do, where to turn and what questions to ask about Bankruptcy,
then feel free to speak with Bankruptcy Experts Geraldton on 1300 795 575, or
visit our website: .bankruptcyexpertsGeraldton.com.au.
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