Amongst the most significant questions we get whenever it comes to Bankruptcy is if you will lose your business if you declare bankruptcy. The short answer is no, you are not likely to lose your business except if you would like to.
When it comes to Bankruptcy, if you are a manager of a company any kind of shape or size you can maintain your business if you wish to, often a failing business can pressure a person into insolvency, so because of those conditions it might be best to let the business go. In Wyong, businesses that become bankrupt have a few options like liquidation, voluntary administration and so on. So remember that it is individuals who declare bankruptcy not businesses.
Bankruptcy is an intricate area so obtain some expert 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?
There are a few essential implications for directors of companies when it pertains to Bankruptcy in Wyong: 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 resign as a director once you’re insolvent.
For some business owners, personal bankruptcy effects their capability to manage the business because of the licensing matters. For instance,, if you operate a building business, 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 questions when it comes to licenses and Bankruptcy in Wyong.
However if your business is not affected directly by such concerns, then you’ll need to reorganize the way you run your business. There are considerations when and if you go bankrupt as a local business owner: you can not get heaps of debt in your business, then declare bankruptcy and subsequently open the doors the following day as if not a single thing had occurred. There are laws in place to prevent 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 speaking with the right people about Bankruptcy. For example, some of the most typical assumptions is that you need a liquidator. But a lot of the time you are going to hear this from a liquidator who stands to make a big payment- so take care with where you get guidance from and be careful about other individuals who could have their own agendas.
An important thing to remember with Bankruptcy is to be careful of basic or simple approaches to your business and Bankruptcy since each business is going to be diverse, and if you are not wary there can be some significant implications. Commonly the right advice for one business owner is the wrong advice for the other. There are some basics however, that you could benefit from. There is no compulsory reduction in the size of your business when you are bankrupt. You can continue to employ and hire new staff. And you can continue to deal with your distributors under certain conditions, the main one being you will need to satisfy the payment terms agreed upon in light of your insolvency.
So when it comes to Bankruptcy, don’t get too confused regarding what you can and can’t do as a business owner, just get the advice that is right for your circumstance. If you wish to learn more about what to do, where to turn and what inquiries to ask about Bankruptcy, then don’t hesitate to consult Bankruptcy Experts Wyong on 1300 795 575, or visit our website: www.bankruptcyexpertswyong.com.au.