|December 8, 2016||Comments Closed|
Amongst the biggest inquiries we get when it comes to Bankruptcy is if you will lose your business if you go bankrupt. The short answer is no, you are unlikely to lose your small business unless you would like to.
When it relates to Bankruptcy, if you are a manager of a company any shape or size you can retain your business if you wish to, often a failing company can pressure someone into insolvency, so taking into account those scenarios it might be better to allow the business go. In Ipswich, enterprises that become insolvent have a few choices like liquidation, voluntary administration etc. So remember that it is individuals who go bankrupt not businesses.
Bankruptcy is a complex area so get some qualified advice on this one, especially if you have a business. Generally speaking, the financial liabilities in a business and personal debts go together when a business owner declares bankruptcy.
Are you a company Director?
Certainly there are a few crucial implications for directors of companies when it relates to Bankruptcy in Ipswich: 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 need to resign as a director as soon as you’re bankrupt.
For some business owners, insolvency effects their ability to operate the business because of the licensing issues. For example,, if you operate a building company, your license will be suspended once you’re bankrupt and consequently you can not trade without that license, so make sure you are asking about the right inquiries when it comes to licenses and Bankruptcy in Ipswich.
However if your business is not impacted directly by such concerns, then you’ll need to restructure the way you operate your business. There are factors to consider when and if you declare bankruptcy as a business owner: you can not get loads of debt in your business, then declare bankruptcy and subsequently open the doors the next day like not a single thing had occurred. There are laws in place to put a stop to what is known as 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 instance, some of the most typical beliefs is that you need to have a liquidator. However a lot of the time you are going to come across this from a liquidator who stands to earn a large commission- so beware with where you obtain recommendations from and be careful about other individuals who might have their own agendas.
An essential thing to keep in mind with Bankruptcy is to be careful of basic or simplified methods to your business and Bankruptcy because each business is likely to be unique, and if you are not wary there might be some substantial implications. Often the right support for one small business owner is the wrong recommendations for the other. There are a few basics nonetheless, that you could benefit from. There is no mandatory reduction in the size of your business when you are bankrupt. You can still recruit and find new employees. And you can continue to deal with your distributors under certain situations, the main one being you will need to fulfill the payment terms agreed upon because of your bankruptcy.
So when it comes to Bankruptcy, don’t get too overwhelmed regarding what you can and can’t do as a business owner, just get the suggestions that is right for your case. If you wish to learn more about what to do, where to turn and what inquiries to ask about Bankruptcy, then do not hesitate to speak with Bankruptcy Experts Ipswich on 1300 795 575, or visit our website: www.bankruptcyexpertsipswich.com.au.