- 0 Comments
- December 8, 2016
- by admin
- Leave a comment
Amongst the biggest questions we get whenever it comes to Bankruptcy is if you can 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 maintain your business if you want to, often a failing company can pressure a person into bankruptcy, so because of those situations it could be best to allow the business go. In Gladstone, businesses that become insolvent have a few alternatives like liquidation, voluntary administration and so on. So remember that it is people who go bankrupt not companies.
Bankruptcy is a complicated area so obtain some professional suggestions on this one, especially if you have a business. Generally speaking, the financial liabilities in a business and personal 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 relates to Bankruptcy in Gladstone: 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 absolutely will be required to resign as a director as soon as you’re bankrupt.
For some business owners, personal bankruptcy impacts their capacity to run the business because of the licensing matters. For instance,, if you manage a building company, your license will be suspended once you’re bankrupt and as a consequence you can not trade without that license, so be sure you are asking the right questions when it comes to licenses and Bankruptcy in Gladstone.
However if your business is not impacted directly by such concerns, then you’ll need to restructure the manner in which you run your business. There are points to consider when and if you go bankrupt as a local business owner: you can not get heaps of financial debt in your business, then go bankrupt and after that open the doors the following day like not a single thing had occurred. There are laws in place to put a stop to what is referred to as phoenix companies appearing out of the ashes of an old company.
Having said that, it’s just an issue of talking to the right people about Bankruptcy. For example, amongst one of the most common beliefs is that you need a liquidator. But a lot of the time you are going to come across this from a liquidator who stands to earn a big commission- so beware with exactly where you get assistance from and be careful about other individuals who could have their own agendas.
An essential point to consider with Bankruptcy is to be careful of general or simplistic approaches to your business and Bankruptcy since each business is going to be unique, and if you are not vigilant there can be some substantial ramifications. Often the right assistance for one business owner is the incorrect recommendations for the other. There are some essentials nonetheless, that you might benefit from. There is no mandatory reduction in the size of your business when you are bankrupt. You can still recruit and hire new staff. And you can continue to deal with your distributors under certain circumstances, the main one being you will need to fulfill 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 advice that is right for your scenario. If you wish to learn more about what to do, where to turn and what concerns to ask about Bankruptcy, then don’t hesitate to speak with Bankruptcy Experts Gladstone on 1300 795 575, or visit our website: www.bankruptcyexpertsgladstone.com.au.