When people in
Adelaide come to me trying to speak about Bankruptcy, they are always full of
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 priorities is 'Will I lose my business if I declare
bankruptcy?' The concise answer is no. If you are a manager of a business any
shape or size you can keep your business if you want to. In Adelaide,
businesses that eventually are insolvent have a few options for instance,
liquidation, voluntary administration and so on. It's individuals who go
bankrupt not businesses.
Bankruptcy is a
complicated area so get some qualified advice on this if you have a business.
Generally speaking, the financial debts in a business and personal debts go
together when a business owner goes bankrupt. There are some necessary
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 after you're
bankrupt.
A constraint
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. There are things you
will want to reveal as an aspect 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 therefore you
can not trade without that license, so make sure you are asking the right
questions when it concerns licenses and Bankruptcy in Adelaide.
On the other
hand if your business is not impacted directly by such issues, then you'll have
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
practically nothing had happened. There are laws in place to stop what is
called phoenix companies popping up out of the ashes of an old business.
Having said
that, it's just a matter of consulting with the correct people about Bankruptcy.
In this circumstance you may think you need a liquidator for your company, and
you could be right, but remember that every liquidator is varied and have their
own motives. Liquidators make money from your liquidation - heaps of money - so
just what advice do you think you will get?
When it comes to
Bankruptcy, I consider that giving generic advice in this area is potentially
risky as it can have very significant implications for directors and business
owners. This is considering that it is one of those cases where what the right
guidance for one business owner is the wrong advice for the other. There are
some principles however, that you may benefit from. There is no limit to the
size of the business you run though you are bankrupt. You can employ staff. You
can constantly deal with your manufacturers 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 uneasy about what you can and can't do as a
business owner, just get the right advice ... If you want to learn more about what
to do, precisely where to turn and what questions to ask about Bankruptcy, then
feel free to contact Bankruptcy Advice
Adelaide on 1300 879 867, or visit our website: .bankruptcy-advice.com.au/Adelaide
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