Bankruptcy in Joondalup – Worried about what will happen to your business?
One of the biggest concerns we get when it comes to Bankruptcy is if you may lose your business if you declare bankruptcy. The short answer is no, you are not likely to lose your business unless you need to.
When it comes to Bankruptcy, if you are a manager of a company any shape or size you can maintain your business if you wish to, typically a failing company can push someone into bankruptcy, so because of those circumstances it could be best to allow your business go. In Joondalup, businesses that become bankrupt have a number of alternatives like liquidation, voluntary administration etc. So remember that it is individuals who declare bankruptcy not companies.
Bankruptcy is a complicated area so get some qualified recommendations on this one, particularly if you have a business. Generally speaking, the monetary liabilities in a business and individual debts go together when a business owner declares bankruptcy.
Are you a company Director?
There are a few essential implications for directors of companies when it relates to Bankruptcy in Joondalup: if you are insolvent you can not be a director of a company – so this means 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, bankruptcy impacts their ability to manage the business due to the licensing issues. For instance,, if you run a building business, your license will be suspended once you’re bankrupt and as a consequence you can not trade without that license, so ensure you are asking the right inquiries when it comes to licenses and Bankruptcy in Joondalup.
However if your business is not affected directly by such concerns, then you’ll need to restructure the manner in which you operate your business. There are considerations when and if you go bankrupt as a local business owner: you can not get loads of financial debt in your business, then go bankrupt and after that open the doors the next day like not a single thing had happened. There are laws in place to stop 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 common beliefs is that you need to have a liquidator. However a lot of the time you are going to be told of this from a liquidator who stands to gain a significant commission- so be careful with precisely where you acquire advice from and be careful about other people who might just have their own agendas.
An essential point to remember with Bankruptcy is to be careful of basic or simplistic approaches to your business and Bankruptcy due to the fact that each business is going to be varied, and if you are not wary there might be some substantial ramifications. Often the right advice for one small business owner is the wrong recommendations for the other. There are a few essentials nonetheless, that you might benefit from. There is no mandatory reduction in the size of your business when you are bankrupt. You can continue to employ and find new employees. And you can continue to deal with your distributors under certain situations, the main one being you will need to satisfy the payment terms agreed upon because of your insolvency.
So when it comes to Bankruptcy, don’t get overly overwhelmed regarding what you can and can’t do as a business owner, just get the help that is right for your scenario. If you wish to find out more about what to do, where to turn and what inquiries to ask about Bankruptcy, then feel free to seek advice from Bankruptcy Experts Joondalup on 1300 795 575, or visit our website: www.bankruptcyexpertsjoondalup.com.au.