When people in
Lismore come to me looking to discuss Bankruptcy,
they are typically filled with questions. The internet has plenty of
information, but far too much of it is confusing or contradicts itself, so I
make it my mission to try and make it clearer. One of the most universal issues
is 'Will I lose my business if I declare bankruptcy?' The quick answer is no.
If you are an owner of a company any shape or size you can maintain your business
if you wish to. In Lismore, businesses that are insolvent have a few options
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
some essential implications for directors of companies when it comes to Bankruptcy
in Lismore: A bankrupt can not be a director of a company, so if you have a pty
ltd company you are going to need to resign as a director as soon as you're
bankrupt.
A constraint
that applies when you are bankrupt as a business owner is that you may be in your
own business as a sole trader only. Certainly there are things you will need to
make known as an aspect of that but effectively you can still run your company.
For some business owners, bankruptcy affects 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 not trade
without that license, so make sure you are asking the ideal questions when it
concerns licenses and Bankruptcy in Lismore.
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 acquire heaps of debt in your
business, 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 growing out of the ashes of an old company.
Having said
that, it's just a point of speaking with the best people about Bankruptcy. In
this situation you may believe you need a liquidator for your business, and you
might be right, but keep in mind that every liquidator is distinct and have
their own motives. Liquidators profit from your liquidation - heaps of money -
so what advice do you believe you will get?
When it comes to
Bankruptcy, I believe that giving generic advice in this area is likely risky
as it can have very severe implications for directors and business owners. This
is due to the fact that it is one of those cases where what the right advice
for one business owner is the wrong advice for the other. There are some
principles however, that you may benefit from. There is no limitation to the
size of the business you run while you are bankrupt. You can employ staff. You
can constantly deal with your distributors 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 worried about what you can and can't do
as a business owner, just get the appropriate 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 contact Bankruptcy Experts Lismore on 1300 795 575, or visit
our website:.bankruptcyexpertsLismore.com.au.
