When people in
Melbourne come to me planning to talk about Bankruptcy, they are always filled with 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 very most
popular issues is 'Will I lose my business if I declare bankruptcy?' The short
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 Melbourne, businesses that eventually become
insolvent have a few options like liquidation, voluntary administration and so
on. It's people who go bankrupt not businesses.
Bankruptcy is a
complicated area so get some expert advice on this one if you have a business.
Generally speaking, the financial obligations in a business and personal debts
go hand in hand when a business owner goes bankrupt. There are several
important implications for directors of companies when it pertains to Bankruptcy
in Melbourne: A bankrupt can not be a director of a company, so if you have a
pty ltd company you will definitely 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
may be in your very own business as a sole trader only. There are things you
will need to reveal as an aspect of that but in essence you can still run your
company. For some business owners, bankruptcy impacts their ability to run the
business because of the licensing issues. For instance, if you run a building
company, your license will be suspended once you're bankrupt and therefore you
can no longer trade without that license, so make sure you are asking the ideal
questions when it concerns licenses and Bankruptcy in Melbourne.
Having said that
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
absolutely nothing had happened. There are laws in place to avoid what is
called phoenix companies growing out of the ashes of an old company.
Having said
that, it's just a matter of consulting with the right people about Bankruptcy.
In this circumstance you may think you need a liquidator for your business, and
you might be right, but bear in mind that every liquidator is distinct and have
their own motives. Liquidators earn money from your liquidation - heaps of
money - so exactly what advice do you think you will get?
When it comes to
Bankruptcy, I believe that giving generic advice in this area is possibly
perilous as it can have very major 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 inappropriate advice for the other. There
are some principles however, that you may benefit from. There is no restriction
to the size of the business you run while 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 too uneasy about what you can and can't do as a
business owner, just get the best advice ... If you wish to learn more about
what to do, precisely where to turn and what questions to ask about Bankruptcy,
then feel free to call Fresh Start Solutions Melbourne on 1300 818 575, or
visit our website: www.freshstartsolutions.com.au/bankruptcy-Melbourne
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