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

When people in Tamworth come to me seeking to talk about Bankruptcy, they are usually loaded 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 general issues 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 Tamworth, businesses that are insolvent have a few options just like 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 one if you have a business. Generally speaking, the financial obligations in a business and personal debts go hand in hand when a business owner declares bankruptcy. There are some important implications for directors of companies when it pertains to Bankruptcy in Tamworth: 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 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. Certainly there are things you must disclose as a part of that but basically you can still run your company. For some business owners, bankruptcy affects 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 no longer trade without that license, so make sure you are asking the ideal questions when it involves licenses and Bankruptcy in Tamworth.

However if your business is not impacted directly by such issues, then you'll will 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 rack up heaps of debt in your business, then go bankrupt then open the doors the next day like absolutely nothing had happened. There are laws in place to stop what is called phoenix companies growing out of the ashes of an old business.

Having said that, it's just a matter of talking to the correct people about Bankruptcy. Here in this circumstance you may believe you need a liquidator for your business, and you might be right, but bear in mind that every liquidator is unique and have their own motives. Liquidators profit from your liquidation - heaps of money - so what advice do you think you will get?

When it comes to Bankruptcy, I consider that giving generic advice in this area is possibly perilous as it can have very substantial 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 wrong advice for the other. There are some principles 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 continue to deal with your distributors 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 overly upset 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 consult Bankruptcy Experts Tamworth on 1300 795 575, or visit our website: bankruptcyexpertsTamworth.com.au.