When people in
Hobart come to me planning to discuss Bankruptcy,
they are typically packed with 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 common concerns 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 keep your business if
you wish to. In Hobart, businesses that are insolvent have a few options for
example, liquidation, voluntary administration and so on. It's individuals who
go bankrupt not companies.
Bankruptcy is a
complex area so get some expert advice on this one 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 vital implications for
directors of companies when it pertains to Bankruptcy in Hobart: A bankrupt can
not be a director of a company, so if you have a pty ltd company you are going
to need to retire as a director once you're bankrupt.
A restriction
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. Certainly there are things you
will want to make known as a part of that but in essence you can still run your
company. For some business owners, bankruptcy impacts their ability to run the
business because of the licensing issues. For instance, if you run a building
company, your license will be suspended once you're bankrupt and consequently
you can not trade without that license, so make sure you are asking the
appropriate questions when it involves licenses and Bankruptcy in Hobart.
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 acquire heaps of debt in your
business, then go bankrupt and then open the doors the next day like not a
single thing had happened. There are laws in place to avoid 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 suitable people about Bankruptcy.
In this circumstance you may think you need a liquidator for your business, and
you could be right, but remember that every liquidator is distinct 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
Bankruptcy, I consider that giving generic advice in this area is essentially
harmful as it can have very significant implications for directors and business
owners. This is because it is just 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 reduce to the size
of the business you run while you are bankrupt. You can employ staff. You can
continue to deal with your suppliers under certain conditions, the main one
being you will need to meet the payment terms agreed upon.
So when it comes
to Bankruptcy, don't get overly upset about what you can and can't do as a
business owner, just get the appropriate advice ... If you would like to learn
more about what to do, where to turn and what questions to ask about Bankruptcy,
then feel free to reach out to Bankruptcy Advice Hobart on 1300 879 867, or
visit our website: bankruptcy-advice.com.au/Hobart .
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