When people in
Hobart come to me looking to talk about Bankruptcy, they are always 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 most simple problems is 'Will I lose my business if I
declare bankruptcy?' The short 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 Hobart,
businesses that eventually become insolvent have a few options like
liquidation, voluntary administration and so on. It's individuals who go
bankrupt not companies.
Bankruptcy is a
complex area so get some qualified advice on this if you have a business.
Generally speaking, the financial debts in a business and personal debts go
together when a business owner declares bankruptcy. There are a few crucial
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 will need to resign as a director soon after you're bankrupt.
A restriction
that applies when you are bankrupt as a business owner is that you may be in
your own business as a sole trader only. Certainly there are things you should
reveal 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. 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 ideal questions
when it comes to licenses and Bankruptcy in Hobart.
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
company, then go bankrupt and afterwards open the doors the next day like
almost nothing 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 talking with the right people about Bankruptcy.
Here in this circumstance you may believe you need a liquidator for your
company, and you might be right, but bear in mind that every liquidator is
unique and have their own motives. Liquidators earn 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 serious implications for directors and business
owners. This is due to the fact that it is one of those cases where what the
right advice for one business owner is the incorrect 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 providers 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 stressed about what you can and can't do as a
business owner, just get the appropriate advice ... If you wish to learn more
about what to do, exactly where to turn and what questions to ask about Bankruptcy,
then feel free to call Fresh Start Solutions Hobart on 1300 818 575, or visit
our website: www.freshstartsolutions.com.au/bankruptcy-Hobart
