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

When people in Toowoomba come to me wanting to speak about Bankruptcy, they are typically filled with questions. The internet is full 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 natural issues 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 would like to. In Toowoomba, businesses that eventually 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 complex area so get some experienced advice on this if you have a business. Generally speaking, the debts in a business and personal debts go hand in hand when a business owner goes bankrupt. There are several crucial implications for directors of companies when it comes to Bankruptcy in Toowoomba: A bankrupt can not be a director of a company, so if you have a pty ltd company you 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 may be in your own business as a sole trader only. Generally there are things you must disclose as an aspect of that but generally you can still run your business. For some business owners, bankruptcy affects their ability to run the business because of the licensing issues. As an 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 Toowoomba.

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

Having said that, it's just an issue of talking to the right people about Bankruptcy. Here in this situation 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 think you will get?

When it comes to Bankruptcy, I consider that giving generic advice in this area is possibly risky as it can have very serious implications for directors and business owners. This is considering 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 principles however, that you may benefit from. There is no limitation to the size of the business you run even though you are bankrupt. You can employ staff. You can constantly deal with your suppliers 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 too confused about what you can and can't do as a business owner, just get the best advice ... If you want 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 Toowoomba on 1300 795 575, or visit our website: .bankruptcyexpertsToowoomba.com.au.