When people in
Cairns come to me looking to talk about Bankruptcy,
they are always loaded with questions. The internet has plenty of information,
but far too much of it is baffling or contradicts itself, so I make it my
mission to try and make it more clear. One of the most simple considerations is
'Will I lose my business if I declare bankruptcy?' The short answer is no. If
you are a manager of a business any shape or size you can maintain your
business if you wish to. In Cairns, businesses that eventually are insolvent
have a few options for instance liquidation, voluntary administration and so
on. It's people who go bankrupt not companies.
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 goes bankrupt. There are
several crucial implications for directors of companies when it pertains to Bankruptcy
in Cairns: A bankrupt can not be a director of a company, so if you have a pty
ltd company you will need to resign as a director once you're bankrupt.
A limitation
that applies when you are bankrupt as a business owner is that you may be in
your very own business as a sole trader only. There are things you have to
reveal as a part of that but in essence you can still run your business. 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 consequently you can no
longer trade without that license, so make sure you are asking the best
questions when it comes to licenses and Bankruptcy in Cairns.
However 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 after that open the doors the next day like
nothing had happened. There are laws in place to stop what is called phoenix
companies popping up out of the ashes of an old company.
Having said
that, it's just a point of speaking to the right people about Bankruptcy. Here
in this circumstance you may think you need a liquidator for your business, and
you could be right, but keep that in mind every liquidator is varied 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 potentially
damaging as it can have very serious implications for directors and business
owners. This is considering that 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
basics 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 companies 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 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 call Bankruptcy Experts Cairns on 1300 795 575, or visit our
website: .bankruptcyexpertsCairns.com.au.
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