Amongst the biggest inquiries 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 unlikely to lose your business except if you would like 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 push a person into insolvency, so because of those conditions it might be better to let the business go. In Port Stephens, enterprises that become insolvent have a couple of choices like liquidation, voluntary administration and so forth. So bear in mind that it is individuals who declare bankruptcy not companies.
Bankruptcy is an intricate area so obtain some qualified recommendations on this one, especially if you have a business. Generally speaking, the financial liabilities in a business and personal 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 refers to Bankruptcy in Port Stephens: if you are insolvent 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 resign as a director once you’re insolvent.
For some business owners, personal bankruptcy impacts their ability to run the business due to the licensing issues. For instance,, if you manage a building company, your license will be put on hold once you’re insolvent and as a consequence you can not trade without that license, so ensure you are asking about the right inquiries when it comes to licenses and Bankruptcy in Port Stephens.
However if your business is not impacted directly by such concerns, then you’ll need to restructure the way you run your business. There are factors to consider when and if you declare bankruptcy as a local business owner: you can not get loads of financial debt in your business, then go bankrupt and afterwards open the doors the following day as if not a single thing had occurred. There are laws in place to put a stop to what is called phoenix companies appearing out of the ashes of an old company.
Having said that, it’s just an issue of consulting with the right people about Bankruptcy. As an example, among the most typical assumptions is that you need to have a liquidator. But a lot of the time you are going to come across this from a liquidator who stands to earn a huge commission- so be careful with where you get recommendations from and be careful about people who might just have their own agendas.
An essential thing to bear in mind with Bankruptcy is to be careful of general or simplified techniques to your business and Bankruptcy because each business is going to be varied, and if you are not careful there may be some substantial ramifications. Often the right advice for one entrepreneur is the incorrect recommendations for the other. There are a few fundamentals nonetheless, that you could benefit from. There is no compulsory reduction in the size of your business when you are insolvent. You can still employ and hire new personnel. And you can continue to deal with your suppliers under certain conditions, the main one being you may need to satisfy the payment terms agreed upon in light of your insolvency.
So when it comes to Bankruptcy, don’t get overly overwhelmed about what you can and can’t do as a business owner, just get the suggestions 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 feel free to speak with Bankruptcy Experts Port Stephens on 1300 795 575, or visit our website: www.bankruptcyexpertsportstephens.com.au.