When people in
Melbourne 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 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 Melbourne, 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.
Bankruptcy 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 Bankruptcy
in Melbourne: 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 Bankruptcy in Melbourne.
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 Bankruptcy. 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
Bankruptcy, 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 Bankruptcy, 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 Bankruptcy, then feel
free to consult Bankruptcy Experts Melbourne on 1300 795 575, or visit our
website: .bankruptcyexpertsMelbourne.com.au.
No comments:
Post a Comment