Amongst the biggest concerns 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 not likely to lose your business unless you want to.
When it relates to Bankruptcy, if you are a manager of a company any shape or size you can keep your business if you wish to, typically a failing business can pressure an individual into insolvency, so because of those conditions it could be better to allow the business go. In Frankston, businesses that become insolvent have a number of options like liquidation, voluntary administration and so on. So keep in mind that it is people who declare bankruptcy not businesses.
Bankruptcy is a complicated aspect so get some specialist advice on this one, particularly if you have a business. Generally speaking, the monetary debts in a business and personal debts go together when a business owner declares insolvency.
Are you a company Director?
Certainly there are a few essential implications for directors of companies when it concerns Bankruptcy in Frankston: if you are bankrupt you can not be a director of a company – so this implies 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 capability to operate the business due to the licensing matters. For example,, if you operate a building company, your license will be suspended once you’re insolvent and as a consequence you can not trade without that license, so ensure you are asking the right inquiries when it comes to licenses and Bankruptcy in Frankston.
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 considerations when and if you go bankrupt as a business owner: you can not acquire loads of financial debt in your business, then declare bankruptcy and subsequently open the doors the following day like not a single thing had happened. There are laws in place to prevent what is named phoenix companies appearing out of the ashes of an old company.
Having said that, it’s just an issue of consulting with the right people about Bankruptcy. For example, some of one of the most typical assumptions is that you need to have a liquidator. But a lot of the time you are going to hear this from a liquidator who stands to gain a large payment- so be careful with precisely where you get assistance from and be careful about other people who may have their own agendas.
An important thing to keep in mind with Bankruptcy is to be careful of basic or simplified approaches to your business and Bankruptcy due to the fact that each business is going to be diverse, and if you are not vigilant there could be some significant ramifications. Commonly the right guidance for one entrepreneur is the incorrect tips for the other. There are some essentials however, that you could benefit from. There is no mandatory reduction in the size of your business when you are bankrupt. You can continue to recruit and hire new employees. And you can easily continue to deal with your distributors under certain conditions, the main one being you may need to fulfill the payment terms agreed upon in light of your insolvency.
So when it comes to Bankruptcy, don’t get too confused regarding what you can and can’t do as a business owner, just get the help that is right for your circumstance. If you would like to learn more about what to do, where to turn and what concerns to ask about Bankruptcy, then do not hesitate to consult Bankruptcy Experts Frankston on 1300 795 575, or visit our website: www.bankruptcyexpertsfrankston.com.au.