Tuesday, August 9, 2016

Bankruptcy in Kalgoorlie - Will I lose my business if I go bankrupt?


When people in Kalgoorlie come to me hoping to discuss Bankruptcy, they are constantly filled with questions. The internet is full of information, but far too much of it is baffling or contradicts itself, so I make it my mission to try and make things clearer. One of the very most usual problems is 'Will I lose my business if I declare bankruptcy?' The quick answer is no. If you are a manager of a company any shape or size you can keep your business if you want to. In Kalgoorlie, businesses that become insolvent have a few options for instance, liquidation, voluntary administration and so on. It's individuals who go bankrupt not businesses.

Bankruptcy is a complicated area so get some experienced advice on this if you have a business. Generally speaking, the financial obligations in a business and personal debts go together when a business owner declares bankruptcy. There are several necessary implications for directors of companies when it comes to Bankruptcy in Kalgoorlie: A bankrupt can not be a director of a company, so if you have a pty ltd company you are going to need to retire as a director soon after you're bankrupt.

A constraint that applies when you are bankrupt as a business owner is that you can be in your own business as a sole trader only. Certainly there are things you have to reveal as a part of that but generally you can still run your business. 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 therefore you can no longer trade without that license, so make sure you are asking the best questions when it involves licenses and Bankruptcy in Kalgoorlie.

On the other hand if your business is not impacted directly by such issues, then you'll have 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 business, then go bankrupt and then open the doors the next day like practically nothing 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 an issue of speaking to the best people about Bankruptcy. In this situation you may think you need a liquidator for your company, and you may be right, but bear in mind that every liquidator is different and have their own motives. Liquidators profit from your liquidation - heaps of money - so just what advice do you believe you will get?

When it comes to Bankruptcy, I believe that giving generic advice in this area is possibly perilous as it can have very major implications for directors and business owners. This is since it is just one of those cases where what the right advice for one business owner is the inappropriate advice for the other. There are some basics however, that you may benefit from. There is no limit to the size of the business you run even though you are bankrupt. You can employ staff. You can constantly 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 extremely uneasy about what you can and can't do as a business owner, just get the right advice ... If you would like to learn more about what to do, exactly where to turn and what questions to ask about Bankruptcy, then feel free to reach out to Bankruptcy Experts Kalgoorlie on 1300 795 575, or visit our website: .bankruptcyexpertsKalgoorlie.com.au.

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