Among the most significant inquiries we get when it comes to Bankruptcy is if you may lose your business if you declare bankruptcy. The short answer is no, you are unlikely to lose your business except if you want 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 business can pressure someone into bankruptcy, so taking into account those situations it may be best to let the business go. In Sunshine Coast, businesses that become bankrupt have a couple of options like liquidation, voluntary administration and more. So bear in mind that it is people who go bankrupt not companies.
Bankruptcy is a complicated aspect so get some expert suggestions on this one, particularly if you have a business. Generally speaking, the financial liabilities in a business and individual debts go together when a business owner declares bankruptcy.
Are you a company Director?
There are a few crucial implications for directors of companies when it concerns Bankruptcy in Sunshine Coast: 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 absolutely will be required to resign as a director once you’re bankrupt.
For some business owners, insolvency impacts their capacity to run the business because of the licensing matters. For example,, if you run a building business, your license will be put on hold once you’re bankrupt and as a consequence you can not trade without that license, so be sure you are asking about the right questions when it comes to licenses and Bankruptcy in Sunshine Coast.
Having said that if your business is not impacted directly by such concerns, then you’ll want to restructure the manner in which you operate your business. There are considerations when and if you declare bankruptcy as a business owner: you can not get heaps of financial debt in your business, then declare bankruptcy and afterwards open the doors the next day like not a single thing had happened. There are laws in place to stop 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 talking to the right people about Bankruptcy. As an example, amongst the most typical assumptions is that you require a liquidator. But most of the time you are going to be told of this from a liquidator who stands to gain a huge commission- so beware with exactly where you obtain guidance from and be careful about people who might have their own agendas.
An important thing to remember with Bankruptcy is to be careful of general or simple methods to your business and Bankruptcy since each business is likely to be varied, and if you are not wary there could be some significant ramifications. Often the right guidance for one business owner is the incorrect suggestions for the other. There are a few basics however, that you could benefit from. There is no mandatory reduction in the size of your business when you are insolvent. You can still employ and find new personnel. And you can easily continue to deal with your suppliers under certain circumstances, the main one being you will need to fulfill the payment terms agreed upon in light of your bankruptcy.
So when it comes to Bankruptcy, don’t get overly overwhelmed concerning what you can and can’t do as a business owner, just get the advice that is right for your case. If you want to learn more about what to do, where to turn and what queries to ask about Bankruptcy, then don’t hesitate to speak with Bankruptcy Experts Sunshine Coast on 1300 795 575, or visit our website: www.bankruptcyexpertssunshinecoast.com.au.