What happens if my business goes bankrupt?

An Australian View What are some of the reasons so many small businesses fail? Some of the causes of business failure stem from how the business is managed, while other causes can be external, such as economic, political or social changes. A business fails when it stops trading for either of the following reasons: •It becomes bankrupt; or •It voluntarily closes down because it is insolvent (unable to pay its debts when they fall due). •Most small business failures occur in the first few months or year. It is usually during this time that lack of knowledge, skills, managerial experience, technical proficiency and entrepreneurial drive take their toll on new and struggling small businesses Bankruptcy is just legal speak for how they will handle your debts and how it will affect your future business dealings. You may be able to avoid bankruptcy by talking to your accountant and possibly challenging the decision. There are organizations that will help you out and you can hire debt collectors if incoming money is a problem because your customers are not paying you. You of course have to decide whether they will be friends or are just vultures in for the kill.