When people in
Perth come to me looking to talk about Bankruptcy,
they are typically full of 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 things clearer. One of the very most natural matters is
'Will I lose my business if I declare bankruptcy?' The short 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 Perth, businesses that end up being insolvent have a few
options just like liquidation, voluntary administration and so on. It's people
who go bankrupt not companies.
Bankruptcy is a
complex area so get some professional advice on this if you have a business.
Generally speaking, the financial obligations in a business and personal debts
go together when a business owner goes bankrupt. There are some crucial
implications for directors of companies when it comes to Bankruptcy in Perth: A
bankrupt can not be a director of a company, so if you have a pty ltd company
you will need to retire as a director after you're bankrupt.
A restriction
that applies when you are generally bankrupt as a business owner is that you
may be in your very own business as a sole trader only. There are things you
have to make known as an aspect of that but basically you can still run your
company. For some business owners, bankruptcy affects their ability to run the
business because of the licensing issues. As an example, if you run a building
company, your license will be suspended once you're bankrupt and therefore you
can no longer trade without that license, so make sure you are asking the ideal
questions when it comes to licenses and Bankruptcy in Perth.
Having said that
if your business is not impacted directly by such issues, then you'll 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 almost nothing
had happened. There are laws in place to stop what is called phoenix companies
appearing out of the ashes of an old business.
Having said
that, it's just a point of talking with the best people about Bankruptcy. Here
in this circumstance you may believe you need a liquidator for your business,
and you may be right, but bear in mind that every liquidator is different and
have their own motives. Liquidators profit from your liquidation - heaps of
money - so just what advice do you think you will get?
When it comes to
Bankruptcy, I consider that giving generic advice in this area is potentially
damaging as it can have very considerable 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 restriction to the size of the business you run when 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 comes
to Bankruptcy, don't get extremely worried about what you can and can't do as a
business owner, just get the best 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 get in touch with Bankruptcy Advice Perth on 1300 879 867, or visit our
website: www.bankruptcy-advice.com.au/Perth .
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