What is bankruptcy?
When your business is struggling, business owners can often overlook the personal risks
when a person owes a debt, the creditor to whom they owe the debt might consider legal action to receive their payment. Sometimes, a debt which is owed by your business might also be personally guaranteed by you or a family member. When the business faces financial hardship, the business creditors might look to the guarantors for payment. In reality, the guarantors are usually heavily invested in the business, and might not have the means to make full and immediate payment themselves.
A creditor who does not wish to negotiate might take legal action to enforce their debt. If they obtain a judgement, they could issue you with a bankruptcy notice. The effect of the bankruptcy notice is that you are presumed personally insolvent if you fail to respond. If you fail to respond, a creditor more often than not will look to make you bankrupt and to appoint a bankruptcy trustee. The bankruptcy trustee is not your friend. Their role is to take over your assets and financial affairs, and to sell off your property (with some exceptions) to pay off all of your creditors.
Bankruptcy has serious implications on your personal affairs, and can impact on the lives of those who rely on you for support. There are countless examples of hardship and losses of the family assets flowing from a badly managed and sometimes avoidable bankruptcy. This is why early, preventative advice, from a trustworthy and qualified source is so important.
Sometimes, when effectively planned for, a bankruptcy can be a fresh start, and can be initiated by you voluntarily.
Contact us to discuss your matter
We have a rich understanding of what works, and, more importantly, what doesn’t
Not all advice in bankruptcy and insolvency is equal, and not all strategies are viable.
When your business or future is on the line, it can be hard to know who you can rely on for help. Cost also plays a part. We know that, sometimes, it can be hard to know who to trust. That is why we are open, clear and straight forward with you when it comes to what works, and what doesn’t work.
Our experience is important because we have a deep understanding of your challenges. We know, and are qualified to give you advice on, how bankruptcy and insolvency laws operate, what strategies actually work and how these can effect your planning. We will work with you to produce a plan which is commercially and legally viable. We do not gamble with your business, or your future.