Amongst the most significant questions we get when it comes to Bankruptcy is if you can lose your business if you go bankrupt. The short answer is no, you are probably not going to lose your small business unless you need 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 someone into bankruptcy, so because of those scenarios it might be most ideal to allow the business go. In Perth, businesses that become insolvent have a couple of alternatives like liquidation, voluntary administration and more. So remember that it is people who declare bankruptcy not companies.
Bankruptcy is an intricate area so get some specialist advice 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?
Certainly there are a few essential ramifications for directors of companies when it concerns Bankruptcy in Perth: if you are insolvent 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 retire as a director once you’re bankrupt.
For some business owners, insolvency effects their ability to manage the business due to the licensing matters. For instance,, if you run a building company, your license will be put on hold once you’re bankrupt and consequently 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 Perth.
However if your business is not affected directly by such issues, then you’ll need to restructure the manner in which you operate your business. There are points to consider when and if you go bankrupt as a business owner: you can not attain loads of debt in your business, then declare bankruptcy and after that 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 talking to the right people about Bankruptcy. For example, one of one of the most common assumptions is that you need to have a liquidator. But a lot of the time you are going to be told of this from a liquidator who stands to gain a big payment- so take care with exactly where you obtain recommendations from and be careful about other individuals who might have their own agendas.
An essential thing to consider with Bankruptcy is to be careful of general or simplistic techniques to your business and Bankruptcy since each business is likely to be varied, and if you are not wary there could be some significant implications. Often the right support for one entrepreneur is the incorrect recommendations for the other. There are a few fundamentals however, that you may benefit from. There is no mandatory reduction in the size of your business when you are insolvent. You can still recruit and find new personnel. And you can continue to deal with your distributors under certain situations, the main one being you will need to satisfy the payment terms agreed upon because of your bankruptcy.
So when it comes to Bankruptcy, don’t get too confused concerning what you can and can’t do as a business owner, just get the recommendations that is right for your circumstance. If you want to find out more about what to do, where to turn and what concerns to ask about Bankruptcy, then feel free to consult Bankruptcy Experts Perth on 1300 795 575, or visit our website: www.bankruptcyexpertsperth.com.au.