One of the most significant concerns we get when it comes to Bankruptcy is if you will lose your business if you declare bankruptcy. The short answer is no, you are not likely to lose your business except if you want to.
When it comes to Bankruptcy, if you are a manager of a company any kind of shape or size you can maintain your business if you want to, typically a failing business can pressure a person into insolvency, so taking into account those circumstances it could be best to let the business go. In Dandenong, businesses that become insolvent have a few options like liquidation, voluntary administration and so on. So bear in mind that it is individuals who go bankrupt not businesses.
Bankruptcy is a complex area so obtain some professional recommendations on this one, particularly if you have a business. Generally speaking, the financial liabilities in a business and individual debts go together when a business owner declares insolvency.
Are you a company Director?
Certainly there are a few essential implications for directors of companies when it relates to Bankruptcy in Dandenong: if you are bankrupt you can not be a director of a company – so this means that if you have a pty ltd company you definitely will need to stop working as a director as soon as you’re bankrupt.
For some business owners, insolvency effects their capability to manage the business due to the licensing matters. Such as, if you run a building business, your license will be suspended once you’re insolvent and as a consequence you can not trade without that license, so be sure you are asking the right inquiries when it comes to licenses and Bankruptcy in Dandenong.
Having said that if your business is not impacted directly by such concerns, then you’ll need to restructure the way you operate your business. There are considerations when and if you declare bankruptcy as a local business owner: you can not get heaps of debt in your business, then go bankrupt and subsequently open the doors the next day as if not a single thing had occurred. There are laws in place to stop what is named phoenix companies showing up 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 one of the most typical beliefs is that you need a liquidator. However a lot of the time you are going to find out this from a liquidator who stands to make a huge commission- so beware with where you acquire guidance from and be careful about other individuals who could have their own agendas.
An essential point to consider with Bankruptcy is to be careful of general or simple methods to your business and Bankruptcy because each business is going to be diverse, and if you are not wary there might be some substantial ramifications. Commonly the right assistance for one entrepreneur is the incorrect recommendations for the other. There are some fundamentals however, that you might benefit from. There is no compulsory reduction in the size of your business when you are insolvent. You can still employ and find new personnel. And you can easily continue to deal with your suppliers under certain situations, the main one being you may need to satisfy the payment terms agreed upon because of your bankruptcy.
So when it comes to Bankruptcy, don’t get overly overwhelmed regarding what you can and can’t do as a business owner, just get the recommendations that is right for your situation. If you would like to learn more about what to do, where to turn and what queries to ask about Bankruptcy, then do not hesitate to speak with Bankruptcy Experts Dandenong on 1300 795 575, or visit our website: www.bankruptcyexpertsdandenong.com.au.