When people in
Gold Coast come to me seeking to discuss Bankruptcy,
they are constantly filled with questions. The internet has lots of
information, but far too much of it is confusing or contradicts itself, so I
make it my mission to try and make it clearer. One of the very most universal
problems is 'Will I lose my business if I declare bankruptcy?' The concise
answer is no. If you are a manager of a company any shape or size you can keep
your business if you want to. In Gold Coast, businesses that end up being
insolvent have a few options for instance liquidation, voluntary administration
and so on. It's individuals who go bankrupt not companies.
Bankruptcy is a
complex 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 hand in hand when a business owner goes bankrupt. There are
some important implications for directors of companies when it comes to Bankruptcy
in Gold Coast: A bankrupt can not be a director of a company, so if you have a
pty ltd company you definitely will need to resign as a director after you're
bankrupt.
A limitation
that applies when you are actually bankrupt as a business owner is that you can
be in your own business as a sole trader only. There are things you have to
disclose as an aspect of that but basically 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 as a consequence you can no
longer trade without that license, so make sure you are asking the appropriate
questions when it concerns licenses and Bankruptcy in Gold Coast.
Having said that
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 rack up heaps of debt in your
company, then go bankrupt then open the doors the next day like practically
nothing 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 a point of consulting with the right people about Bankruptcy.
Here in this situation you may believe you need a liquidator for your business,
and you might be right, but keep that in mind every liquidator is different and
have their own motives. Liquidators make money from your liquidation - heaps of
money - so what advice do you think you will get?
When it comes to
Bankruptcy, I believe that giving generic advice in this area is possibly
dangerous as it can have very substantial implications for directors and
business owners. This is because 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
principles 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
concerns Bankruptcy, don't get too uneasy about what you can and can't do as a
business owner, just get the appropriate advice ... If you need 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 Fresh Start Solutions Gold Coast on 1300 818
575, or visit our website: www.freshstartsolutions.com.au/bankruptcy-Gold Coast
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