Amongst the most significant concerns we get when it comes to Bankruptcy is if you can lose your business if you declare bankruptcy. The short answer is no, you are unlikely to lose your small business unless 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 keep your business if you want to, often a failing company can pressure a person into bankruptcy, so because of those situations it may be most ideal to let your business go. In Shellharbour, businesses that become insolvent have a few options like liquidation, voluntary administration etc. So remember that it is individuals who declare bankruptcy not companies.
Bankruptcy is a complex aspect so obtain some specialist advice on this one, particularly if you have a business. Generally speaking, the financial liabilities in a business and individual debts go together when a business owner declares bankruptcy.
Are you a company Director?
Certainly there are a few crucial ramifications for directors of companies when it refers to Bankruptcy in Shellharbour: 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 definitely will be required to resign as a director once you’re bankrupt.
For some business owners, bankruptcy effects their capability to run the business due to the licensing issues. For instance,, if you run a building company, your license will be suspended once you’re insolvent and consequently you can not trade without that license, so make sure you are asking the right questions when it comes to licenses and Bankruptcy in Shellharbour.
Having said that if your business is not affected directly by such concerns, then you’ll need to restructure the way you operate your business. There are considerations when and if you declare bankruptcy as a local business owner: you can not acquire heaps of financial debt in your business, then declare bankruptcy and after that open the doors the following day as if not a single thing had happened. There are laws in place to stop what is called 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, among one of the most common assumptions is that you need to have a liquidator. But a lot of the time you are going to find out this from a liquidator who stands to earn a big payment- so take care with exactly where you get advice from and be careful about other individuals who might have their own agendas.
An important point to keep in mind with Bankruptcy is to be mindful of general or simplified techniques to your business and Bankruptcy because each business is going to be unique, and if you are not cautious there could be some substantial ramifications. Commonly the right assistance for one small business owner is the incorrect advice for the other. There are some essentials nonetheless, that you might benefit from. There is no compulsory reduction in the size of your business when you are insolvent. You can still recruit and find new staff. And you can continue to deal with your distributors under certain situations, 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 overly overwhelmed concerning what you can and can’t do as a business owner, just get the recommendations that is right for your circumstance. If you would like to find out more about what to do, where to turn and what questions to ask about Bankruptcy, then do not hesitate to speak with Bankruptcy Experts Shellharbour on 1300 795 575, or visit our website: www.bankruptcyexpertsshellharbour.com.au.