When people in
Melbourne come to me planning to talk about Bankruptcy, they are constantly loaded with questions. The internet
has plenty 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 simple worries is 'Will I lose my business if I declare bankruptcy?' The
quick answer is no. If you are a manager of a company any shape or size you can
keep your business if you would like to. In Melbourne, businesses that end up
being insolvent have a few options for example, liquidation, voluntary
administration and so on. It's people 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 financial obligations in a business and
personal debts go together when a business owner declares bankruptcy. There are
some crucial implications for directors of companies when it comes to Bankruptcy
in Melbourne: A bankrupt can not be a director of a company, so if you have a
pty ltd company you will definitely need to resign as a director soon after
you're bankrupt.
A limitation
that applies when you are actually bankrupt as a business owner is that you may
be in your own business as a sole trader only. Certainly there are things you
must disclose as a part of that but generally you can still run your business.
For some business owners, bankruptcy impacts 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 as a consequence you
can not trade without that license, so make sure you are asking the appropriate
questions when it comes to licenses and Bankruptcy in Melbourne.
On the other
hand 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 rack up heaps of
debt in your company, then go bankrupt and then open the doors the next day
like not a thing had happened. There are laws in place to avoid what is called
phoenix companies growing out of the ashes of an old business.
Having said
that, it's just an issue of talking to the suitable people about Bankruptcy.
Here in this situation you may believe you need a liquidator for your company,
and you may be right, but bear in mind that every liquidator is distinct and
have their own motives. Liquidators make money from your liquidation - heaps of
money - so what advice do you believe you will get?
When it comes to
Bankruptcy, I think that giving generic advice in this area is likely dangerous
as it can have very severe implications for directors and business owners. This
is due to the fact that it is one of those cases where what the right advice
for one business owner is the incorrect 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 when you are bankrupt. You can employ staff. You can
constantly deal with your manufacturers under certain conditions, the main one
being you will need to meet the payment terms agreed upon.
So when it
concerns Bankruptcy, don't get extremely upset about what you can and can't do
as a business owner, just get the best advice ... If you want to learn more
about what to do, where to turn and what questions to ask about Bankruptcy,
then feel free to speak with Bankruptcy Advice Melbourne on 1300 879 867, or
visit our website: www.bankruptcy-advice.com.au/Melbourne .
