When people in
Brisbane come to me trying to discuss Bankruptcy,
they are constantly full of 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 simple concerns is 'Will
I lose my business if I declare bankruptcy?' The quick 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 Brisbane, 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 obligations in a business and
personal debts go hand in hand when a business owner goes bankrupt. There are
several essential implications for directors of companies when it pertains to Bankruptcy
in Brisbane: A bankrupt can not be a director of a company, so if you have a
pty ltd company you are going to need to retire as a director as soon as you're
bankrupt.
A restriction
that applies when you are generally bankrupt as a business owner is that you
may be in your very own business as a sole trader only. There are things you
will need to make known as a part of that but ultimately you can still run your
company. For some business owners, bankruptcy affects their ability to run the
business because of the licensing issues. For instance, if you run a building
company, your license will be suspended once you're bankrupt and therefore you
can not trade without that license, so make sure you are asking the ideal
questions when it involves licenses and Bankruptcy in Brisbane.
However 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 rack up heaps of debt in your
business, then go bankrupt then open the doors the next day like not a thing
had happened. There are laws in place to stop what is called phoenix companies
popping up out of the ashes of an old business.
Having said
that, it's just a point of speaking with the correct people about Bankruptcy.
In this circumstance you may believe you need a liquidator for your business,
and you could be right, but keep in mind that every liquidator is varied and
have their own motives. Liquidators profit from your liquidation - heaps of
money - so what advice do you think you will get?
When it comes to
Bankruptcy, I believe that giving generic advice in this area is essentially
damaging as it can have very major implications for directors and business
owners. This is because 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 while you are bankrupt. You can employ staff.
You can continue to deal with your suppliers 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 overly stressed about what you can and can't do
as a business owner, just get the appropriate advice ... If you want to learn
more about what to do, precisely where to turn and what questions to ask about Bankruptcy,
then feel free to get in touch with Fresh Start Solutions Brisbane on 1300 818
575, or visit our website: freshstartsolutions.com.au/bankruptcy-Brisbane
