When people in
Canberra come to me trying to discuss Bankruptcy,
they are constantly 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
worries is 'Will I lose my business if I declare bankruptcy?' The concise
answer is no. If you are an owner of a business any shape or size you can
maintain your business if you want to. In Canberra, businesses that eventually
are insolvent have a few options like liquidation, voluntary administration and
so on. It's people 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 significant implications for directors of companies when it pertains to Bankruptcy
in Canberra: 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 as soon as
you're bankrupt.
A limitation
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 need to
reveal as an aspect of that but essentially you can still run your company. For
some business owners, bankruptcy impacts their ability to run the business because
of the licensing issues. For example, 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 best questions when it
involves licenses and Bankruptcy in Canberra.
But 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 then open the doors the next day like not a single
thing 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 talking with the suitable people about Bankruptcy.
In this circumstance you may think you need a liquidator for your company, and
you could be right, but keep in mind that every liquidator is different and
have their own motives. Liquidators make money from your liquidation - heaps of
money - so exactly what advice do you believe you will get?
When it comes to
Bankruptcy, I believe that giving generic advice in this area is possibly risky
as it can have very considerable implications for directors and business
owners. This is since 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 limitation to the size
of the business you run even though you are bankrupt. You can employ staff. You
can continue to 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 upset about what you can and can't do as
a business owner, just get the appropriate advice ... If you would like to
learn more about what to do, where to turn and what questions to ask about Bankruptcy,
then feel free to speak with Bankruptcy Advice Canberra on 1300 879 867, or
visit our website: www.bankruptcy-advice.com.au/Canberra .
