Bankruptcy in Wollongong – Stressed about what will happen to your business?
Among the biggest inquiries we get whenever it comes to Bankruptcy is if you can lose your business if you go bankrupt. The short answer is no, you are not likely to lose your small business except if you need to.
When it comes to Bankruptcy, if you are a manager of a company any shape or size you can keep your business if you want to, often a failing company can pressure a person into bankruptcy, so taking into account those conditions it may be most ideal to let the business go. In Wollongong, enterprises that become bankrupt have a couple of options like liquidation, voluntary administration and more. So keep in mind that it is people who declare bankruptcy not companies.
Bankruptcy is an intricate aspect so get some professional advice on this one, especially if you have a business. Generally speaking, the financial debts in a business and personal debts go together when a business owner declares bankruptcy.
Are you a company Director?
Certainly there are a few essential implications for directors of companies when it relates to Bankruptcy in Wollongong: if you are bankrupt you can not be a director of a company – so this implies that if you have a pty ltd company you definitely will be required to stop working as a director once you’re bankrupt.
For some business owners, bankruptcy impacts their capacity to operate the business because of the licensing matters. For example,, if you run a building company, your license will be put on hold once you’re insolvent and as a consequence you can not trade without that license, so make sure you are asking the right questions when it comes to licenses and Bankruptcy in Wollongong.
However if your business is not impacted directly by such concerns, then you’ll need to reorganize the way you run your business. There are considerations when and if you declare bankruptcy as a business owner: you can not attain loads of debt in your business, then declare bankruptcy and after that open the doors the next day as if not a single thing had occurred. There are laws in place to stop what is referred to as phoenix companies appearing out of the ashes of an old company.
Having said that, it’s just an issue of talking to the right people about Bankruptcy. As an example, one of the most typical assumptions is that you need a liquidator. However most of the time you are going to come across this from a liquidator who stands to earn a significant commission- so beware with where you obtain recommendations from and be careful about other individuals who might have their own agendas.
An essential thing to consider with Bankruptcy is to be mindful of general or simplistic approaches to your business and Bankruptcy due to the fact that each business is likely to be different, and if you are not cautious there might be some significant implications. Often the right guidance for one small business owner is the incorrect guidance for the other. There are a few basics nonetheless, that you could benefit from. There is no obligatory reduction in the size of your business when you are insolvent. You can still employ and hire new employees. And you can easily continue to deal with your suppliers under certain situations, the main one being you may need to meet the payment terms agreed upon because of your insolvency.
So when it comes to Bankruptcy, don’t get too overwhelmed concerning what you can and can’t do as a business owner, just get the suggestions that is right for your case. If you want to learn more about what to do, where to turn and what queries to ask about Bankruptcy, then feel free to speak with Bankruptcy Experts Wollongong on 1300 795 575, or visit our website: www.bankruptcyexpertswollongong.com.au.