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

When people in Rockhampton come to me trying to speak about Bankruptcy, they are typically loaded with 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 most routine troubles is 'Will I lose my business if I declare bankruptcy?' The brief answer is no. If you are a manager of a business any shape or size you can maintain your business if you want to. In Rockhampton, businesses that are insolvent have a few options for example, liquidation, voluntary administration and so on. It's individuals who go bankrupt not companies.

Bankruptcy is a complicated area so get some expert advice on this if you have a business. Generally speaking, the financial debts in a business and personal debts go hand in hand when a business owner declares bankruptcy. There are some crucial implications for directors of companies when it pertains to Bankruptcy in Rockhampton: 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 as soon as you're bankrupt.

A restriction that applies when you are actually bankrupt as a business owner is that you may be in your very own business as a sole trader only. There are things you should disclose as a part of that but basically you can still run your business. For some business owners, bankruptcy affects 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 as a consequence you can not trade without that license, so make sure you are asking the right questions when it involves licenses and Bankruptcy in Rockhampton.

Having said that 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 acquire heaps of debt in your company, then go bankrupt and after that open the doors the next day like practically nothing had happened. There are laws in place to avoid what is called phoenix companies appearing out of the ashes of an old company.

Having said that, it's just a point of talking to the right people about Bankruptcy. In this circumstance you may believe you need a liquidator for your business, and you may be right, but keep in mind that 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 think that giving generic advice in this area is potentially risky as it can have very serious implications for directors and business owners. This is because 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 principles however, that you may benefit from. There is no restriction to the size of the business you run even though you are bankrupt. You can employ staff. You can continue to deal with your providers 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 uneasy about what you can and can't do as a business owner, just get the best 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 speak with Bankruptcy Experts Rockhampton on 1300 795 575, or visit our website: www.bankruptcyexpertsRockhampton.com.au.