When people in Albury come to me planning to talk about Going Bankrupt, they are usually loaded with questions. The internet is full 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 very most general problems is ‘Will I lose my business if I declare bankruptcy?’ The brief answer is no. If you are an owner of a business any shape or size you can keep your business if you want to. In Albury, businesses that eventually become insolvent have a few options just like liquidation, voluntary administration and so on. It’s people who go bankrupt not businesses.
Going Bankrupt is a complicated area so get some expert advice on this if you have a business. Generally speaking, the financial debts in a business and personal debts go hand in hand when a business owner declares bankruptcy. There are several necessary implications for directors of companies when it comes to Going Bankrupt in Albury: A bankrupt can not be a director of a company, so if you have a pty ltd company you will likely need to resign as a director after you’re bankrupt.
A constraint that applies when you are generally bankrupt as a business owner is that you can be in your very own business as a sole trader only. There are things you will need to reveal as a part of that but generally you can still run your company. For some business owners, bankruptcy impacts 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 as a consequence you can not trade without that license, so make sure you are asking the ideal questions when it involves licenses and Going Bankrupt in Albury.
On the other hand 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 company, then go bankrupt and after that open the doors the next day like almost nothing had happened. There are laws in place to avoid what is called phoenix companies growing out of the ashes of an old company.
Having said that, it’s just an issue of talking with the best people about Going Bankrupt. In this circumstance you may believe you need a liquidator for your company, and you may 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 think you will get?
When it comes to Going Bankrupt, I consider that giving generic advice in this area is possibly damaging as it can have very significant implications for directors and business owners. This is considering that 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 limit to the size of the business you run though you are bankrupt. You can employ staff. You can constantly deal with your manufacturers under certain conditions, the main one being you will need to meet the payment terms agreed upon.
So when it comes to Going Bankrupt, don’t get overly upset about what you can and can’t do as a business owner, just get the right advice … If you wish to learn more about what to do, where to turn and what questions to ask about Going Bankrupt, then feel free to consult Bankruptcy Albury on 1300 795 575, or visit our website: bankruptcyexpertsalbury.com.au