Amongst the most significant questions we get whenever it comes to Bankruptcy is if you can lose your business if you declare bankruptcy. The short answer is no, you are not likely to lose your business unless you want to.
When it comes to Bankruptcy, if you are a manager of a company any shape or size you can keep your business if you want to, typically a failing business can push a person into insolvency, so because of those situations it might be better to allow the business go. In Mildura, businesses that become bankrupt have a number of options like liquidation, voluntary administration etc. So remember that it is people who declare bankruptcy not companies.
Bankruptcy is a complex area so obtain some qualified suggestions on this one, especially if you have a business. Generally speaking, the financial debts in a business and individual debts go together when a business owner declares bankruptcy.
Are you a company Director?
There are a few essential implications for directors of companies when it concerns Bankruptcy in Mildura: if you are insolvent 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 stop working as a director as soon as you’re bankrupt.
For some business owners, bankruptcy impacts their ability to run the business because of the licensing matters. Such as, if you run a building business, your license will be suspended once you’re insolvent and as a consequence 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 Mildura.
However if your business is not affected directly by such issues, then you’ll want to reorganize the manner in which you run your business. There are considerations when and if you declare bankruptcy as a business owner: you can not acquire heaps of debt in your business, then go bankrupt and afterwards open the doors the next day like not a single thing had happened. There are laws in place to put a stop to what is referred to as phoenix companies showing up out of the ashes of an old company.
Having said that, it’s just an issue of speaking with the right people about Bankruptcy. For instance, one of one of the most typical beliefs is that you really need a liquidator. However most of the time you are going to find out this from a liquidator who stands to gain a huge commission- so take care with where you get advice from and be careful about other individuals who might just have their own agendas.
An important point to consider with Bankruptcy is to be mindful of basic or simplistic approaches to your business and Bankruptcy due to the fact that each business is likely to be unique, and if you are not cautious there could be some huge ramifications. Commonly the right guidance for one entrepreneur is the incorrect advice for the other. There are some essentials however, that you could benefit from. There is no compulsory reduction in the size of your business when you are bankrupt. You can continue to employ and hire new employees. And you can easily continue to deal with your suppliers under certain conditions, the main one being you will need to meet the payment terms agreed upon taking into account your bankruptcy.
So when it comes to Bankruptcy, don’t get overly confused about 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 find out more about what to do, where to turn and what queries to ask about Bankruptcy, then feel free to speak with Bankruptcy Experts Mildura on 1300 795 575, or visit our website: www.bankruptcyexpertsmildura.com.au.