The fear is worse than the reality.
Why do I need to go bankrupt?
Company directors are exposed to personal risk in a number of areas. The main areas include:
liability for business debts under a personal guarantee
receipt of a Director’s Penalty Notice (DPN) from the Australian Tax Office (ATO) that has expired
having unpaid and unreported GST, PAYG & Superannuation Guarantee Charge (SGC) that was not reported within the required timeframes
claims made by the Liquidator against the director(s).
Preparing for bankruptcy is important. Personal assets, such as the director’s equity in the family home or motor vehicles, can be sold for a fair market value and therefore protected from claims by a Bankruptcy Trustee.