One of the biggest questions we get whenever it comes to Bankruptcy is if you may lose your business if you go bankrupt. The short answer is no, you are probably not going to lose your business unless you want to.
When it relates to Bankruptcy, if you are a manager of a company any kind of shape or size you can retain your business if you wish to, often a failing company can pressure someone into insolvency, so because of those situations it may be most ideal to let your business go. In Lismore, businesses that become insolvent have a couple of options like liquidation, voluntary administration and so forth. So bear in mind that it is individuals who declare bankruptcy not businesses.
Bankruptcy is a complicated aspect so get some professional recommendations on this one, especially if you have a business. Generally speaking, the financial debts in a business and individual debts go together when a business owner declares bankruptcy.
Are you a company Director?
There are a few crucial implications for directors of companies when it concerns Bankruptcy in Lismore: if you are bankrupt you can not be a director of a company – so this implies that if you have a pty ltd company you absolutely will be required to retire as a director as soon as you’re insolvent.
For some business owners, bankruptcy impacts their ability to operate the business because of the licensing matters. Such as, if you manage a building company, your license will be suspended once you’re bankrupt and as a consequence you can not trade without that license, so ensure you are asking the right questions when it comes to licenses and Bankruptcy in Lismore.
Having said that if your business is not affected directly by such concerns, then you’ll want to reorganize the manner in which you run your business. There are considerations when and if you declare bankruptcy as a business owner: you can not acquire heaps of debt in your business, then go bankrupt and afterwards open the doors the next day like not a single thing had happened. There are laws in place to prevent 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, some of the most common beliefs is that you need a liquidator. But a lot of the time you are going to come across this from a liquidator who stands to earn a big commission- so be careful with where you acquire advice from and be careful about other people who may have their own agendas.
An essential thing to remember with Bankruptcy is to be mindful of general or simplified strategies to your business and Bankruptcy since each business is going to be varied, and if you are not cautious there can be some huge implications. Commonly the right assistance for one entrepreneur is the wrong recommendations for the other. There are a few basics nonetheless, that you may benefit from. There is no obligatory reduction in the size of your business when you are insolvent. You can still employ and find new staff. And you can continue to deal with your suppliers under certain circumstances, the main one being you may need to fulfill the payment terms agreed upon because of your bankruptcy.
So when it comes to Bankruptcy, don’t get too confused concerning what you can and can’t do as a business owner, just get the advice that is right for your circumstance. If you would like to learn more about what to do, where to turn and what queries to ask about Bankruptcy, then feel free to consult Bankruptcy Experts Lismore on 1300 795 575, or visit our website: www.bankruptcyexpertslismore.com.au.