When people in
Sunshine Coast come to me wanting to talk about Bankruptcy, they are always filled 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 it more clear. One of the most routine
matters is 'Will I lose my business if I declare bankruptcy?' The concise
answer is no. If you are a manager of a company any shape or size you can
maintain your business if you want to. In Sunshine Coast, businesses that
become insolvent have a few options for example, liquidation, voluntary
administration and so on. It's people who go bankrupt not businesses.
Bankruptcy is a
complicated area so get some professional advice on this if you have a
business. Generally speaking, the financial debts in a business and personal
debts go hand in hand when a business owner goes bankrupt. There are some
crucial implications for directors of companies when it comes to Bankruptcy in
Sunshine Coast: 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 can be in
your own business as a sole trader only. There are things you will need to
disclose as an aspect of that but ultimately you can still run your business.
For some business owners, bankruptcy impacts their ability to run the business
because of the licensing issues. As an example, 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 appropriate
questions when it involves licenses and Bankruptcy in Sunshine Coast.
On the other
hand if your business is not impacted directly by such issues, then you'll have
to restructure the way you run your business. There are considerations when and
if you go bankrupt as a business owner: you can not acquire heaps of debt in
your company, then go bankrupt and afterwards open the doors the next day like
practically nothing had happened. There are laws in place to stop what is
called phoenix companies popping up out of the ashes of an old company.
Having said
that, it's just a point of talking with the correct people about Bankruptcy. In
this circumstance you may believe you need a liquidator for your company, and
you may be right, but keep that in mind every liquidator is unique and have
their own motives. Liquidators profit from your liquidation - heaps of money -
so just what advice do you believe you will get?
When it comes to
Bankruptcy, I think that giving generic advice in this area is possibly
damaging as it can have very serious implications for directors and business
owners. This is considering that it is just one of those cases where what the
right advice for one business owner is the incorrect advice for the other.
There are some basics however, that you may benefit from. There is no
restriction to the size of the business you run while you are bankrupt. You can
employ staff. You can continue to deal with your vendors under certain
conditions, the main one being you will need to meet the payment terms agreed
upon.
So when it comes
to Bankruptcy, don't get overly stressed about what you can and can't do as a
business owner, just get the best advice ... If you want to learn more about
what to do, where to turn and what questions to ask about Bankruptcy, then feel
free to contact Fresh Start Solutions Sunshine Coast on 1300 818 575, or visit
our website: .freshstartsolutions.com.au/bankruptcy-Sunshine Coast
