Going Bankrupt in Australia seems to sneak in the shadows of both the corporate world and our personal lives. It’s the utmost taboo subject. The issue is perception– because in reality bankruptcy is purely a tool that we can use to protect ourselves, and rich people know this. Rich people have found out that insolvency is an essential part of being in business, in some cases things don’t work out like you had planned, that the market has changed and the numbers simply don’t work anymore. If you are operating a small business in Newcastle, then focus, because (and not to sound too dramatic) learning more about this may help you to save your business, car, house and family.
With the recent closure and liquidation of Clive Palmer’s nickel mine there has been a community backfire, workers have lost their jobs and an entire area will be affected by the sudden shut down of the mine. Likewise we have also witnessed the decline of the Dick Smith’s chain of customer electrics, as you have probably noticed around Newcastle– nonetheless this has been met with far less resentment in the community.
Regardless, both have shut down and yet both high profile owners are nevertheless rich and worth millions of dollars. So how does that work? How can these individuals have virtually had a huge business failure, and yet had this barely affect their personal wealth? It is because they know the nuances of Going Bankrupt.
When it concerns businesses, there is always a risk that you may fail, and this is no different when compared to a small business in Newcastle than it is to looking at a large corporation– there is always risk, and there is always a way to mitigate the risk.
First of all, there are clear ways to protect assets in your business projects, ways to uncouple your assets and virtually place a wall between a business, and your home and car. Often this takes the shape of a legal trust, if you would like to learn more about this then talk to a professional when setting up your Newcastle business. However this really should be done well before you start having problems.
The next thing that you ought to learn more about Going Bankrupt from this is that often there will be a moment when you will want to step back from the business that is failing and know when to call an end to it. That is what has occurred with Clive Palmer and Dick Smith– both have been managing businesses long enough to recognize when it is not going to succeed any longer so they pull the plug rather than going down with the ship.
Ultimately, Going Bankrupt is viewed as a horribly demanding decision packed with stigma, and we should remove this, because some of the most successful and wealthy people in the world have declared bankruptcy many times.
Some of the biggest troubles that lots of people have in Newcastle is that business owners are not willing to just stand back from the problem and think critically. Because typically there is not going to be a time when you can carefully just ‘call it quits’, but you need to realise when fighting on is just going to do more harm than good – because you don’t need to fight to the bitter end.
If you have ever lived in a Bushfire sensitive area you would recognize that you have 2 options: fight or retreat – and the same can be said of business. If you fight with a failing business in some cases you can save it, but more often than not you will be engulfed by the flames. But if you are smart you will retreat, let the organization of Bankruptcy help douse the flames and save your house. Just like any part of life, this is a hard decision, and this is one that you should rarely make without specialist advice, but don’t be afraid to turn to Going Bankrupt when you have to.
If you really would like to find out more about some of your options when it comes to Going Bankrupt – such as what to do, where to turn and what questions to ask about Going Bankrupt, then feel free to consult with Bankruptcy Experts Newcastle on 1300 795 575, or visit our website: www.bankruptcyexpertsNewcastle.com.au.