|December 8, 2016||Comments Closed|
One of the most significant questions we get whenever it comes to Bankruptcy is if you can lose your business if you declare bankruptcy. The short answer is no, you are probably not going to lose your business except if you need to.
When it relates to Bankruptcy, if you are a manager of a company any shape or size you can keep your business if you wish to, typically a failing company can push a person into insolvency, so because of those scenarios it could be best to allow your business go. In Bendigo, enterprises that become bankrupt have a number of alternatives like liquidation, voluntary administration and more. So bear in mind that it is individuals who declare bankruptcy not businesses.
Bankruptcy is an intricate area so get some expert recommendations on this one, especially if you have a business. Generally speaking, the financial liabilities in a business and personal debts go together when a business owner declares bankruptcy.
Are you a company Director?
Certainly there are a few crucial ramifications for directors of companies when it concerns Bankruptcy in Bendigo: if you are insolvent you can not be a director of a company – so this implies that if you have a pty ltd company you definitely will need to resign as a director once you’re insolvent.
For some business owners, insolvency impacts their capability to operate the business because of the licensing issues. For instance,, if you operate a building business, your license will be put on hold once you’re bankrupt and consequently you can not trade without that license, so make sure you are asking about the right questions when it comes to licenses and Bankruptcy in Bendigo.
However if your business is not affected directly by such issues, then you’ll need to restructure the manner in which you run your business. There are considerations when and if you declare bankruptcy as a business owner: you can not attain heaps of debt in your business, then go bankrupt and after that open the doors the next day as if not a single thing had happened. There are laws in place to impede what is called phoenix companies appearing out of the ashes of an old company.
Having said that, it’s just an issue of seeking advice from the right people about Bankruptcy. As an example, amongst the most typical assumptions is that you need a liquidator. However a lot of the time you are going to be told of this from a liquidator who stands to gain a big payment- so be careful with exactly where you obtain suggestions from and be careful about other individuals who may have their own agendas.
An essential thing to remember with Bankruptcy is to be mindful of basic or simplistic approaches to your business and Bankruptcy since each business is going to be unique, and if you are not wary there may be some significant ramifications. Commonly the right guidance for one entrepreneur is the wrong recommendations for the other. There are some fundamentals nonetheless, that you may benefit from. There is no mandatory reduction in the size of your business when you are insolvent. You can still employ and hire new employees. And you can easily continue to deal with your distributors under certain situations, the main one being you will need to satisfy the payment terms agreed upon because of your bankruptcy.
So when it comes to Bankruptcy, don’t get too overwhelmed concerning what you can and can’t do as a business owner, just get the advice that is right for your circumstance. If you wish to find out more about what to do, where to turn and what concerns to ask about Bankruptcy, then feel free to consult Bankruptcy Experts Bendigo on 1300 818 575, or visit our website: www.bankruptcyexpertsbendigo.com.au.