When people in
Adelaide come to me trying to discuss Bankruptcy, they are constantly full of
questions. The internet is full of information, but far too much of it is
baffling or contradicts itself, so I make it my mission to try and make things
clearer. One of the most natural troubles is 'Will I lose my business if I
declare bankruptcy?' The brief answer is no. If you are a manager of a company
any shape or size you can keep your business if you want to. In Adelaide,
businesses that eventually are insolvent have a few options like liquidation,
voluntary administration and so on. It's individuals who go bankrupt not
companies.
Bankruptcy is a
complicated area so get some experienced advice on this one if you have a
business. Generally speaking, the financial debts in a business and personal
debts go together when a business owner declares bankruptcy. There are a few
crucial 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 bankrupt as a business owner is that you may be in
your own business as a sole trader only. Generally there are things you have to
reveal as a part of that but essentially you can still run your business. For
some business owners, bankruptcy impacts their ability to run the business because
of the licensing issues. Such as, if you run a building company, your license
will be suspended once you're bankrupt and as a consequence you can not trade
without that license, so make sure you are asking the right questions when it
comes to licenses and Bankruptcy in Adelaide.
However 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
business, then go bankrupt and afterwards open the doors the next day like not
a single thing had happened. There are laws in place to stop what is called
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.
In this circumstance you may believe you need a liquidator for your company,
and you could be right, but remember that every liquidator is different and
have their own motives. Liquidators profit from your liquidation - heaps of
money - so exactly what advice do you believe you will get?
When it comes to
Bankruptcy, I believe that giving generic advice in this area is possibly
dangerous as it can have very considerable implications for directors and
business owners. This is since it is one of those cases where what the right
guidance for one business owner is the incorrect advice for the other. There
are some fundamentals however, that you may benefit from. There is no reduce to
the size of the business you run when you are bankrupt. You can employ staff.
You can continue to deal with your suppliers 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 confused 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 consult Bankruptcy Experts Adelaide on 1300 795 575, or visit
our website: www.bankruptcyexpertsAdelaide.com.au.
