When people in
Perth come to me wanting to discuss Bankruptcy,
they are typically filled 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 it clearer. One of the most regular worries
is 'Will I lose my business if I declare bankruptcy?' The concise answer is no.
If you are an owner of a company any shape or size you can keep your business
if you want to. In Perth, businesses that are 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 qualified 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 declares bankruptcy. There
are some vital implications for directors of companies when it comes to Bankruptcy
in Perth: A bankrupt can not be a director of a company, so if you have a pty
ltd company you will definitely need to retire as a director after you're
bankrupt.
A limitation
that applies when you are generally bankrupt as a business owner is that you
can be in your own business as a sole trader only. Generally there are things
you have to disclose as a part of that but in essence you can still run your
company. For some business owners, bankruptcy affects 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 consequently
you can no longer trade without that license, so make sure you are asking the
right questions when it involves licenses and Bankruptcy in Perth.
But 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 then open the doors the next day like nothing at all
had happened. There are laws in place to avoid what is called phoenix companies
growing out of the ashes of an old company.
Having said
that, it's just a point of speaking to the best people about Bankruptcy. In
this situation you may believe you need a liquidator for your company, and you
might be right, but remember that every liquidator is unique 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 think that giving generic advice in this area is potentially
perilous as it can have very significant implications for directors and
business owners. This is since it is one of those cases where what the right
guidance for one business owner is the incorrect advice for the other. There
are some fundamentals however, that you may benefit from. There is no reduce to
the size of the business you run even though you are bankrupt. You can employ
staff. You can continue to deal with your companies 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 too worried 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, where to turn and what questions to ask about Bankruptcy, then feel
free to speak with Fresh Start Solutions Perth on 1300 818 575, or visit our
website:.freshstartsolutions.com.au/bankruptcy-Perth
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