When people in
Hobart come to me looking to talk about Bankruptcy,
they are usually loaded with questions. The internet is full of information,
but far too much of it is baffling or contradicts itself, so I make it my
mission to try and make it more clear. One of the most frequent matters is
'Will I lose my business if I declare bankruptcy?' The concise answer is no. If
you are an owner of a company any shape or size you can maintain your business
if you would like to. In Hobart, businesses that are insolvent have a few
options such as liquidation, voluntary administration and so on. It's
individuals who go bankrupt not businesses.
Bankruptcy is a
complicated area so get some professional advice on this one if you have a
business. Generally speaking, the debts in a business and personal debts go
hand in hand when a business owner declares bankruptcy. There are a few vital
implications for directors of companies when it comes to Bankruptcy in Hobart:
A bankrupt can not be a director of a company, so if you have a pty ltd company
you will need to retire as a director once you're bankrupt.
A limitation
that applies when you are actually bankrupt as a business owner is that you may
be in your very own business as a sole trader only. There are things you need
to reveal as an aspect of that but generally you can still run your company.
For some business owners, bankruptcy impacts their ability to run the business
because of the licensing issues. Such as, if you run a building company, your
license will be suspended once you're bankrupt and consequently you can no
longer trade without that license, so make sure you are asking the best
questions when it comes to licenses and Bankruptcy in Hobart.
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 rack up heaps of debt in your business,
then go bankrupt and afterwards open the doors the next day like practically
nothing had happened. There are laws in place to avoid what is called phoenix
companies popping up out of the ashes of an old company.
Having said
that, it's just a point of talking with the best people about Bankruptcy. In
this circumstance you may believe you need a liquidator for your company, and
you might be right, but keep in mind that every liquidator is varied and have
their own motives. Liquidators make money from your liquidation - heaps of
money - so exactly what advice do you believe you will get?
When it comes to
Bankruptcy, I consider that giving generic advice in this area is likely risky
as it can have very severe implications for directors and business owners. This
is since it is one of those cases where what the right guidance for one
business owner is the inappropriate advice for the other. There are some
fundamentals 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 suppliers 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 overly upset about what you can and can't do as a
business owner, just get the right 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 reach out to Bankruptcy Experts Hobart on 1300 795 575, or
visit our website: .bankruptcyexpertsHobart.com.au.
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