Bankruptcy in Geelong – Worried about what will happen to your business?
Amongst the biggest inquiries we get whenever it comes to Bankruptcy is if you will lose your business if you go bankrupt. The short answer is no, you are not likely to lose your business unless you would like to.
When it comes to Bankruptcy, if you are a manager of a company any kind of shape or size you can maintain your business if you want to, typically a failing company can push a person into insolvency, so taking into account those circumstances it could be most ideal to allow the business go. In Geelong, businesses that become bankrupt have a number of options like liquidation, voluntary administration and so on. So remember that it is people who declare bankruptcy not businesses.
Bankruptcy is a complex aspect so get some qualified advice on this one, particularly if you have a business. Generally speaking, the monetary liabilities in a business and personal debts go together when a business owner declares bankruptcy.
Are you a company Director?
Certainly there are a few crucial ramifications for directors of companies when it pertains to Bankruptcy in Geelong: 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 absolutely will be required to resign as a director once you’re bankrupt.
For some business owners, personal bankruptcy impacts their ability to manage the business because of the licensing issues. For instance,, if you manage a building business, your license will be suspended once you’re bankrupt and consequently you can not trade without that license, so ensure you are asking the right inquiries when it comes to licenses and Bankruptcy in Geelong.
However if your business is not affected directly by such issues, then you’ll need to reorganize the way you operate your business. There are factors to consider when and if you declare bankruptcy as a business owner: you can not attain loads of financial debt in your business, then go bankrupt and afterwards open the doors the following day like not a single thing had happened. There are laws in place to impede 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, one of the most common presumptions is that you really need 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 exactly where you obtain assistance from and be careful about people who might have their own agendas.
An essential point to remember with Bankruptcy is to be cautious of general or simplified approaches to your business and Bankruptcy since each business is likely to be unique, and if you are not vigilant there can be some huge implications. Often the right guidance for one entrepreneur is the incorrect assistance for the other. There are some essentials however, that you could benefit from. There is no mandatory reduction in the size of your business when you are insolvent. You can still recruit and hire new staff. And you can easily continue to deal with your suppliers under certain circumstances, the main one being you may need to fulfill the payment terms agreed upon in light of your insolvency.
So when it comes to Bankruptcy, don’t get too confused regarding what you can and can’t do as a business owner, just get the suggestions that is right for your scenario. If you would like to find out more about what to do, where to turn and what questions to ask about Bankruptcy, then don’t hesitate to consult Bankruptcy Experts Geelong on 1300 795 575, or visit our website: www.bankruptcyexpertsgeelong.com.au.