When people in
Adelaide come to me wanting to talk about Bankruptcy,
they are always filled with questions. The internet has plenty of information,
but far too much of it is baffling or contradicts itself, so I make it my
mission to try and make things more clear. One of the very most simple troubles
is 'Will I lose my business if I declare bankruptcy?' The short answer is no.
If you are a manager of a company any shape or size you can keep your business
if you wish to. In Adelaide, businesses that eventually become insolvent have a
few options for instance liquidation, voluntary administration and so on. It's
individuals who go bankrupt not businesses.
Bankruptcy is a
complex area so get some reliable advice on this one 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 a few vital implications
for directors of companies when it pertains to Bankruptcy in Adelaide: A
bankrupt can not be a director of a company, so if you have a pty ltd company
you definitely will need to retire as a director as soon as you're bankrupt.
A restriction
that applies when you are generally bankrupt as a business owner is that you
may be in your very own business as a sole trader only. Certainly there are
things you must reveal as a part of that but generally you can still run your
business. For some business owners, bankruptcy affects their ability to run the
business because of the licensing issues. For example, if you run a building
company, your license will be suspended once you're bankrupt and consequently
you can not trade without that license, so make sure you are asking the ideal
questions when it comes to licenses and Bankruptcy in Adelaide.
But if your
business is not impacted directly by such issues, then you'll will 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 rack up heaps of debt in your
company, then go bankrupt then open the doors the next day like not a thing had
happened. There are laws in place to stop what is called phoenix companies
growing out of the ashes of an old company.
Having said
that, it's just a matter of speaking with the right people about Bankruptcy. In
this situation you may think you need a liquidator for your business, and you
could be right, but remember that every liquidator is unique and have their own
motives. Liquidators make money from your liquidation - heaps of money - so
exactly what advice do you think you will get?
When it comes to
Bankruptcy, I think that giving generic advice in this area is potentially
perilous as it can have very substantial implications for directors and business
owners. This is because it is 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 restriction
to the size of the business you run even though you are bankrupt. You can
employ staff. You can constantly deal with your vendors under certain
conditions, the main one being you will need to meet the payment terms agreed
upon.
So when it comes
to Bankruptcy, don't get overly worried about what you can and can't do as a
business owner, just get the appropriate 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 Adelaide on 1300 818
575, or visit our website: .freshstartsolutions.com.au/bankruptcy-Adelaide
