When people in
Sydney come to me hoping to talk about Bankruptcy,
they are usually filled with questions. The internet has lots 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 most usual problems is 'Will
I lose my business if I declare bankruptcy?' The concise answer is no. If you
are an owner of a business any shape or size you can maintain your business if
you want to. In Sydney, businesses that eventually are insolvent have a few
options for instance liquidation, voluntary administration and so on. It's
people who go bankrupt not businesses.
Bankruptcy is a
complex area so get some expert advice on this if you have a business.
Generally speaking, the debts in a business and personal debts go hand in hand
when a business owner declares bankruptcy. There are some vital implications
for directors of companies when it pertains to Bankruptcy in Sydney: A bankrupt
can not be a director of a company, so if you have a pty ltd company you will
definitely need to retire as a director soon after you're bankrupt.
A limitation
that applies when you are actually bankrupt as a business owner is that you can
be in your own business as a sole trader only. Certainly there are things you
will need to make known as an aspect of that but in essence you can still run
your business. 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
consequently you can no longer trade without that license, so make sure you are
asking the ideal questions when it concerns licenses and Bankruptcy in Sydney.
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
company, then go bankrupt and after that open the doors the next day like
almost nothing had happened. There are laws in place to prevent what is called
phoenix companies appearing out of the ashes of an old company.
Having said
that, it's just a matter of talking to the right people about Bankruptcy. Here
in this circumstance you may think you need a liquidator for your business, and
you might 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 believe 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 major implications for directors and business
owners. This is since it is just one of those cases where what the right
guidance for one business owner is the inappropriate advice for the other.
There are some fundamentals however, that you may benefit from. There is no
limit to the size of the business you run while you are bankrupt. You can
employ staff. You can constantly deal with your suppliers under certain
conditions, the main one being you will need to meet the payment terms agreed
upon.
So when it
concerns Bankruptcy, don't get extremely stressed about what you can and can't
do as a business owner, just get the right advice ... If you would like to
learn more about what to do, exactly where to turn and what questions to ask
about Bankruptcy, then feel free to get in touch with Fresh Start Solutions
Sydney on 1300 818 575, or visit our website:.freshstartsolutions.com.au/bankruptcy-Sydney
