When people in Perth come to me hoping to discuss Going Bankrupt, they are always full of questions. The internet is full 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 general troubles is ‘Will I lose my business if I declare bankruptcy?’ The quick answer is no. If you are an owner of a company any shape or size you can maintain your business if you wish to. In Perth, businesses that are insolvent have a few options for instance liquidation, voluntary administration and so on. It’s people who go bankrupt not companies.
Going Bankrupt is a complex area so get some reliable advice on this one if you have a business. Generally speaking, the financial debts in a business and personal debts go together when a business owner declares bankruptcy. There are a few crucial implications for directors of companies when it comes to Going Bankrupt in Perth: 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 generally bankrupt as a business owner is that you can be in your very own business as a sole trader only. There are things you need to make known as an aspect of that but effectively you can still run your company. 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 no longer trade without that license, so make sure you are asking the ideal questions when it comes to licenses and Going Bankrupt in Perth.
However if your business is not impacted directly by such issues, then you’ll 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 company, then go bankrupt and afterwards open the doors the next day like not a thing had happened. There are laws in place to avoid what is called phoenix companies appearing out of the ashes of an old business.
Having said that, it’s just a point of talking to the suitable people about Going Bankrupt. Here in this circumstance you may believe you need a liquidator for your company, and you may be right, but keep that in mind every liquidator is different and have their own motives. Liquidators earn money from your liquidation – heaps of money – so just what advice do you think you will get?
When it comes to Going Bankrupt, I believe that giving generic advice in this area is likely damaging as it can have very severe implications for directors and business owners. This is considering that it is one of those cases where what the right advice for one business owner is the wrong advice for the other. There are some basics however, that you may benefit from. There is no limitation to the size of the business you run even though you are bankrupt. You can employ staff. You can continue to deal with your providers under certain conditions, the main one being you will need to meet the payment terms agreed upon.
So when it comes to Going Bankrupt, don’t get too uneasy 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 Going Bankrupt, then feel free to contact Bankruptcy Experts Perth on 1300 795 575, or visit our website:.bankruptcyexpertsPerth.com.au.