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

When people in Mackay come to me hoping to discuss Bankruptcy, they are constantly 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 more clear. One of the most universal worries 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 want to. In Mackay, businesses that become insolvent have a few options such as liquidation, voluntary administration and so on. It's individuals who go bankrupt not businesses.

Bankruptcy is a complicated area so get some skilled 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 necessary implications for directors of companies when it comes to Bankruptcy in Mackay: 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 bankrupt as a business owner is that you may be in your very own business as a sole trader only. Generally there are things you will need to reveal as a part of that but in a nutshell 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 consequently you can not trade without that license, so make sure you are asking the ideal questions when it involves licenses and Bankruptcy in Mackay.

But 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 after that open the doors the next day like virtually nothing had happened. There are laws in place to prevent what is called phoenix companies appearing out of the ashes of an old company.

Having said that, it's just an issue of speaking to the correct people about Bankruptcy. Here in this circumstance you may believe you need a liquidator for your company, and you could be right, but bear in mind that every liquidator is varied and have their own motives. Liquidators earn money from your liquidation - heaps of money - so exactly what advice do you think you will get?

When it comes to Bankruptcy, I consider that giving generic advice in this area is potentially damaging 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 incorrect advice for the other. There are some basics 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 vendors 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 extremely upset about what you can and can't do as a business owner, just get the best advice ... If you need to learn more about what to do, precisely where to turn and what questions to ask about Bankruptcy, then feel free to contact Bankruptcy Experts Mackay on 1300 795 575, or visit our website: .bankruptcyexpertsMackay.com.au.