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

When people in Canberra come to me hoping to discuss Bankruptcy, they are always full of questions. The internet has lots 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 common concerns is 'Will I lose my business if I declare bankruptcy?' The brief 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 Canberra, businesses that become insolvent have a few options just like liquidation, voluntary administration and so on. It's individuals who go bankrupt not companies.

Bankruptcy is a complicated area so get some qualified advice on this one if you have a business. Generally speaking, the debts in a business and personal debts go hand in hand when a business owner declares bankruptcy. There are several important implications for directors of companies when it comes to Bankruptcy in Canberra: A bankrupt can not be a director of a company, so if you have a pty ltd company you will definitely need to retire as a director once you're bankrupt

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A constraint that applies when you are actually bankrupt as a business owner is that you can be in your very own business as a sole trader only. Certainly there are things you have to make known as a part 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 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 Canberra.

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 and after that open the doors the next day like virtually nothing had happened. There are laws in place to avoid 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 best people about Bankruptcy. Here in this circumstance you may think you need a liquidator for your business, and you might be right, but keep that in mind every liquidator is different and have their own motives. Liquidators earn money 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 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 wrong advice for the other. There are some fundamentals however, that you may benefit from. There is no restriction to the size of the business you run though you are bankrupt. You can employ staff. You can constantly deal with your manufacturers 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 overly upset about what you can and can't do as a business owner, just get the right advice ... If you want to learn more about what to do, precisely where to turn and what questions to ask about Bankruptcy, then feel free to get in touch with Bankruptcy Experts Canberra on 1300 795 575, or visit our website: www.bankruptcyexpertsCanberra.com.au.