Sunday, August 7, 2016

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


When people in Darwin come to me trying to discuss Bankruptcy, they are always filled with questions. The internet has lots of information, but far too much of it is confusing or contradicts itself, so I make it my mission to try and make it more clear. One of the very most common troubles 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 wish to. In Darwin, businesses that become insolvent have a few options including liquidation, voluntary administration and so on. It's people who go bankrupt not businesses.
Bankruptcy is a complicated area so get some reliable advice on this 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 essential implications for directors of companies when it pertains to Bankruptcy in Darwin: A bankrupt can not be a director of a company, so if you have a pty ltd company you definitely will need to resign as a director as soon as you're bankrupt.

A limitation that applies when you are bankrupt as a business owner is that you may be in your own business as a sole trader only. Certainly there are things you will want to make known as a part of that but in essence you can still run your company. For some business owners, bankruptcy impacts their ability to run the business because of the licensing issues. Such as, if you run a building company, your license will be suspended once you're bankrupt and consequently you can not trade without that license, so make sure you are asking the best questions when it involves licenses and Bankruptcy in Darwin.

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

Having said that, it's just a point of talking with the suitable 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 varied and have their own motives. Liquidators earn money from your liquidation - heaps of money - so just what advice do you think you will get?

When it comes to Bankruptcy, I consider that giving generic advice in this area is likely dangerous as it can have very significant implications for directors and business owners. This is due to the fact that it is just one of those cases where what the right advice for one business owner is the wrong advice for the other. There are some basics however, that you may benefit from. There is no restriction to the size of the business you run while you are bankrupt. You can employ staff. You can continue to 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 too uneasy about what you can and can't do as a business owner, just get the best advice ... If you wish to learn more about what to do, exactly where to turn and what questions to ask about Bankruptcy, then feel free to call Fresh Start Solutions Darwin on 1300 818 575, or visit our website: .freshstartsolutions.com.au/bankruptcy-Darwin

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