Monday, August 8, 2016

Bankruptcy in Gold Coast - Will I lose my business if I go bankrupt?


When people in Gold Coast come to me hoping to discuss Bankruptcy, they are constantly loaded 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 things clearer. One of the very most universal 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 maintain your business if you would like to. In Gold Coast, businesses that end up being insolvent have a few options including liquidation, voluntary administration and so on. It's people who go bankrupt not companies.

Bankruptcy is a complex area so get some qualified advice on this one if you have a business. Generally speaking, the financial obligations in a business and personal debts go together when a business owner goes bankrupt. There are a few crucial implications for directors of companies when it pertains to Bankruptcy in Gold Coast: A bankrupt can not be a director of a company, so if you have a pty ltd company you will likely need to resign as a director after you're bankrupt.

A restriction 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. Generally there are things you have to disclose as an aspect of that but basically you can still run your business. 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 not trade without that license, so make sure you are asking the right questions when it involves licenses and Bankruptcy in Gold Coast.
Having said that if your business is not impacted directly by such issues, then you'll will 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 then open the doors the next day like not a single thing had happened. There are laws in place to avoid what is called phoenix companies appearing out of the ashes of an old company.

Having said that, it's just a matter of consulting with the suitable people about Bankruptcy. Here in this situation you may think you need a liquidator for your company, and you could be right, but keep that in mind every liquidator is unique and have their own motives. Liquidators profit from your liquidation - heaps of money - so just what advice do you believe you will get?

When it comes to Bankruptcy, I think that giving generic advice in this area is potentially damaging as it can have very significant implications for directors and business owners. This is since it is just one of those cases where what the right guidance for one business owner is the wrong advice for the other. There are some basics however, that you may benefit from. There is no reduce to the size of the business you run even though you are bankrupt. You can employ staff. You can continue to deal with your manufacturers under certain conditions, the main one being you will need to meet the payment terms agreed upon.


So when it concerns Bankruptcy, don't get overly upset 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, exactly where to turn and what questions to ask about Bankruptcy, then feel free to get in touch with Bankruptcy Experts Gold Coast on 1300 795 575, or visit our website: www.bankruptcyexpertsGoldcoast.com.au.

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