When people in
Perth come to me hoping to discuss Bankruptcy,
they are always full of questions. The internet is full of information, but far
too much of it is confusing or contradicts itself, so I make it my mission to
try and make things clearer. One of the very most general troubles is 'Will I
lose my business if I declare bankruptcy?' The quick answer is no. If you are
an owner of a company any shape or size you can maintain your business if you
wish to. In Perth, businesses that are insolvent have a few options for
instance liquidation, voluntary administration and so on. It's people who go
bankrupt not companies.
Bankruptcy is a
complex area so get some reliable 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 comes to Bankruptcy in Perth: A
bankrupt can not be a director of a company, so if you have a pty ltd company
you will need to retire as a director once you're bankrupt.
A limitation
that applies when you are generally bankrupt as a business owner is that you
can be in your very own business as a sole trader only. There are things you
need to make known as an aspect of that but effectively you can still run your
company. 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 no longer trade without that license, so make sure you are asking the
ideal questions when it comes to licenses and Bankruptcy in Perth.
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
company, then go bankrupt and afterwards open the doors the next day like not a
thing had happened. There are laws in place to avoid what is called phoenix
companies appearing out of the ashes of an old business.
Having said
that, it's just a point of talking to the suitable people about Bankruptcy.
Here in this circumstance you may believe you need a liquidator for your
company, and you may be right, but keep that in mind every liquidator is
different and have their own motives. Liquidators earn money from your
liquidation - heaps of money - so just what advice do you think you will get?
When it comes to
Bankruptcy, I believe that giving generic advice in this area is likely
damaging as it can have very severe implications for directors and business
owners. This is considering that it is one of those cases where what the right
advice for one business owner is the wrong advice for the other. There are some
basics however, that you may benefit from. There is no limitation to the size
of the business you run even though you are bankrupt. You can employ staff. You
can continue to deal with your providers 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 too uneasy about what you can and can't do as a
business owner, just get the right advice ... If you wish to learn more about
what to do, exactly where to turn and what questions to ask about Bankruptcy,
then feel free to contact Bankruptcy Experts Perth on 1300 795 575, or visit
our website: .bankruptcyexpertsPerth.com.au.
