When people in
Mildura come to me planning to talk about Bankruptcy,
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 things more clear. One of the most universal matters is
'Will I lose my business if I declare bankruptcy?' The short answer is no. If
you are an owner of a company any shape or size you can maintain your business
if you want to. In Mildura, businesses that eventually become insolvent have a
few options such as liquidation, voluntary administration and so on. It's
people who go bankrupt not businesses.
Bankruptcy is a
complicated area so get some skilled advice on this if you have a business.
Generally speaking, the debts in a business and personal debts go together when
a business owner goes bankrupt. There are several necessary implications for
directors of companies when it comes to Bankruptcy in Mildura: A bankrupt can
not be a director of a company, so if you have a pty ltd company you will
likely need to retire as a director once you're bankrupt.
A restriction
that applies when you are actually bankrupt as a business owner is that you may
be in your own business as a sole trader only. Generally there are things you
must make known as an aspect of that but ultimately you can still run your
company. For some business owners, bankruptcy impacts their ability to run the
business because of the licensing issues. Such as, if you run a building
company, your license will be suspenaded once you're bankrupt and consequently
you can no longer trade without that license, so make sure you are asking the
right questions when it comes to licenses and Bankruptcy in Mildura.
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 then open the doors the next day like
nothing at all 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 an issue of talking with the correct people about Bankruptcy.
In this situation you may believe you need a liquidator for your business, and
you could be right, but keep in mind that every liquidator is distinct and have
their own motives. Liquidators earn money 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 likely unsafe
as it can have very substantial implications for directors and business owners.
This is due to the fact 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 fundamentals 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 constantly deal with your companies under certain conditions, the main one
being you will need to meet the payment terms agreed upon.
So when it comes
to Bankruptcy, don't get too 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 Bankruptcy, then feel
free to reach out to Bankruptcy Experts Mildura on 1300 795 575, or visit our
website: .bankruptcyexpertsMildura.com.au.
