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

When people in Sydney come to me wanting to speak about Bankruptcy, they are usually packed with questions. The internet has plenty of information, but far too much of it is baffling or contradicts itself, so I make it my mission to try and make it more clear. One of the most basic 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 keep your business if you want to. In Sydney, businesses that end up being insolvent have a few options including liquidation, voluntary administration and so on. It's individuals who go bankrupt not companies.

Bankruptcy is a complicated area so get some professional 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 a few significant implications for directors of companies when it pertains to Bankruptcy in Sydney: A bankrupt can not be a director of a company, so if you have a pty ltd company you are going to need to resign as a director as soon as you're bankrupt.

A limitation that applies when you are generally bankrupt as a business owner is that you can be in your very own business as a sole trader only. Certainly there are things you should reveal as an aspect of that but in a nutshell you can still run your company. 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 therefore you can not trade without that license, so make sure you are asking the appropriate questions when it comes to licenses and Bankruptcy in Sydney.

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

Having said that, it's just an issue of consulting with the suitable people about Bankruptcy. Here in this circumstance you may think you need a liquidator for your business, and you could be right, but keep in mind that every liquidator is different and have their own motives. Liquidators make money from your liquidation - heaps of money - so just what advice do you believe you will get?

When it comes to Bankruptcy, I consider that giving generic advice in this area is possibly perilous as it can have very substantial implications for directors and business owners. This is because it is just one of those cases where what the right guidance 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 constantly deal with your manufacturers 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 confused 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, where to turn and what questions to ask about Bankruptcy, then feel free to speak with Bankruptcy Experts Sydney on 1300 795 575, or visit our website: .bankruptcyexpertsSydney.com.au.