When people in Alice Springs come to me trying to speak about Going Bankrupt, they are usually filled with questions. The internet has plenty of information, but far too much of it is baffling or contradicts itself, so I make it my mission to try and make things more clear. One of the most natural worries is ‘Will I lose my business if I declare bankruptcy?’ The quick answer is no. If you are an owner of a business any shape or size you can keep your business if you would like to. In Alice Springs, businesses that eventually become insolvent have a few options such as liquidation, voluntary administration and so on. It’s individuals who go bankrupt not companies.
Going Bankrupt is a complex area so get some reliable advice on this if you have a business. Generally speaking, the debts in a business and personal debts go hand in hand when a business owner goes bankrupt. There are some essential implications for directors of companies when it pertains to Going Bankrupt in Alice Springs: A bankrupt can not be a director of a company, so if you have a pty ltd company you are going to need to resign as a director as soon as you’re bankrupt.
A restriction that applies when you are generally bankrupt as a business owner is that you may be in your very own business as a sole trader only. There are things you should reveal as an aspect of that but generally you can still run your company. For some business owners, bankruptcy affects 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 as a consequence you can no longer trade without that license, so make sure you are asking the ideal questions when it concerns licenses and Going Bankrupt in Alice Springs.
Having said that if your business is not impacted directly by such issues, then you’ll will 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 business, then go bankrupt and afterwards open the doors the next day like almost nothing had happened. There are laws in place to avoid what is called phoenix companies popping up out of the ashes of an old business.
Having said that, it’s just an issue of speaking to the best people about Going Bankrupt. Here in this circumstance you may believe you need a liquidator for your business, and you might be right, but bear in mind that every liquidator is unique and have their own motives. Liquidators earn money from your liquidation – heaps of money – so what advice do you think you will get?
When it comes to Going Bankrupt, I believe that giving generic advice in this area is possibly damaging as it can have very serious implications for directors and business owners. This is because it is just one of those cases where what the right guidance for one business owner is the inappropriate advice for the other. There are some basics however, that you may benefit from. There is no reduce to the size of the business you run 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 concerns Going Bankrupt, don’t get extremely uneasy about what you can and can’t do as a business owner, just get the right advice … If you want to learn more about what to do, precisely where to turn and what questions to ask about Going Bankrupt, then feel free to call Bankruptcy Experts Alice Springs on 1300 795 575, or visit our website: bankruptcyexpertsAlice Springs.com.au.