If a business is struggling with debt, it may feel like bankruptcy or closing the business is the only option.
Bankruptcy only applies to individual and when it comes to ending the business, it is called Liquidation. When a company can't pay its debts then it goes into liquidation. It stops operating and the company assets are sold in an attempt to pay off the debts.
Registered liquidators are a person who is registered as a liquidator in ASIC (Australian Securities & Investments Commission). They are appointed when a company goes into liquidation and has responsibility for collecting in all of the assets under such circumstances of the company and settling all claims against the company before putting the company into dissolution.
During this episode Andrew Jo, an accountant specialised in insolvency from Green Gate Advisory and Ji Hoon Chang, a lawyer from David Chang Legal answer for the questions often raised by Korean business owners. The questions covered by the two experts are like below as follow;
- Can a director be personally liable for company debts?
- Can I go to jail for debt in Australia?
- Are my children liable for company debts?
- Can my personal assets or belongings be taken away by creditors or liquidators?
- Will I be ever able to run a business again?
[The Full interview is available via podcast above]
David Chang, a lawyer from David Chang Legal and Andrew Jo, an accountant specialised in insolvency from Green Gate Advisory Source: SBS Korean Program
