Going Bankrupt in Australia – The mysteries rich people know about going bankrupt.
Going Bankrupt in Australia appears to lurk 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 discovered that insolvency is an important part of staying in business, sometimes things don’t work out like you had planned, that the market has evolved and the numbers simply don’t work anymore. If you are managing a small business in Australia, then pay attention, because (and not to sound too dramatic) being familiar with 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 district will be impaired by the sudden shut down of the mine. Similarly we have also witnessed the drop-off of the Dick Smith’s chain of consumer electrics, as you have possibly noticed around Australia– nonetheless this has been met with far less outrage in the community.
Regardless, both have closed and yet both high profile owners are nevertheless rich and worth millions of dollars. So how does that work? How can these individuals have effectively had a huge business failure, but had this barely affect their personal wealth? It is because they understand the nuances of Going Bankrupt.
When it comes to businesses, there is always a risk that you are going to fail, and this is no different when compared to a small business in Australia than it is to considering a large corporation– there is always risk, and there is always a way to reduce the risk.
First of all, there are certain ways to protect assets in your business projects, ways to unlink your assets and virtually place a wall in between a business, and your home and car. Often this takes the shape of a legal trust, if you wish to learn more about this then talk with a professional when creating your Australia business. However this really has to be done before you start having concerns.
The 2nd thing that you need to discover Going Bankrupt from this is that often there will be an occasion when you will have to step back from the business that is failing and know when to call an end to it. This is what has occurred with Clive Palmer and Dick Smith– both have been managing businesses long enough to understand when it is not going to prosper any longer therefore they pull the plug rather than going down with the ship.
Ultimately, Going Bankrupt is considered a horribly demanding decision full of stigma, and we have to remove this, because some of the most successful and wealthy people in the world have declared bankruptcy numerous times.
One of the biggest troubles that many people have in Australia is that business owners are not ready to just stand back from the scenario and think critically. Because typically there is not going to be a time when you can easily 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 prone area you would know 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 usually you will be swallowed up by the flames. But if you are smart you will retreat, let the establishment of Bankruptcy help douse the flames and save your home. 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 fear to turn to Going Bankrupt when you have to.
If you really want to learn 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 talk to Bankruptcy Experts Australia on 1300 795 575, or visit our website: www.bankruptcyexpertsAustralia.com.au.