There are a number of myths and misunderstandings about bankruptcy and liquidation. As small business owners, hopefully these are things we won't have to worry about. However, they inevitably occur when, for example, a business is struggling with cash-flow and experiencing major difficulties in paying its bills. Contributing to this, it may be that customers are behind in their payments for goods and services because they too are having liquidity problems.
The Government regulatory bodies (ASIC and AFSA) have teamed up to give some helpful guidelines on this knotty subject. These include some simple definitions, the difference between company and personal liabilities, a few cautions regarding untrustworthy advisors and, conversely, the importance of getting good professional advice.
BLA clients are sometimes faced with the prospect of bankruptcy and liquidation so we are keen to see that they find the right pathways and information when the subject arises. So, for more information, please refer to the link below: https://www.afsa.gov.au/sites/default/files/bankruptcyliquidationbrochure.pdf