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

When people in Coffs Harbour come to me seeking to discuss Bankruptcy, they are typically packed 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 more clear. One of the very most normal troubles 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 maintain your business if you wish to. In Coffs Harbour, businesses that become insolvent have a few options such as liquidation, voluntary administration and so on. It's people who go bankrupt not businesses.

Bankruptcy is a complex area so get some skilled advice on this one if you have a business. Generally speaking, the financial obligations in a business and personal debts go together when a business owner goes bankrupt. There are some necessary implications for directors of companies when it comes to Bankruptcy in Coffs Harbour: 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 restriction that applies when you are bankrupt as a business owner is that you can be in your own business as a sole trader only. Generally there are things you will need to make known as an aspect 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 example, if you run a building company, your license will be suspended once you're bankrupt and as a consequence you can no longer trade without that license, so make sure you are asking the ideal questions when it comes to licenses and Bankruptcy in Coffs Harbour.

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 company, then go bankrupt and after that open the doors the next day like almost nothing had happened. There are laws in place to avoid what is called phoenix companies popping up out of the ashes of an old business.

Having said that, it's just an issue of speaking with the correct people about Bankruptcy. Here in this situation you may think you need a liquidator for your company, and you may be right, but keep in mind that every liquidator is unique 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 unsafe 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 principles however, that you may benefit from. There is no limitation to the size of the business you run 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 comes to Bankruptcy, don't get too uneasy about what you can and can't do as a business owner, just get the appropriate 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 consult Bankruptcy Experts Coffs Harbour on 1300 795 575, or visit our website: .bankruptcyexpertsCoffs Harbour.com.au.