A licensee may not be able to utilise the shelter of the Bankruptcy Act 1966 to restructure their affairs or have a new beginning in the way that others might.
The reason for this is that the state government imposes heavy burdens on builders who suffer an insolvency event.
Queensland has the clearest and most severe guidelines. Any insolvency event, even those under Parts IX and X of the Bankruptcy Act attract a 3 year ban. 2 strikes and its life!
There is a link to the Information Sheet here.
Sometimes the solution for a QBCC licence holder in financial difficulty is to enter into an informal arrangement. Negotiating individual settlement arrangements with a range of creditors is delicate work. Few of us can do it for ourselves and those that try are invariably fooling themselves whilst destroying their prospects. At this point the person has either run out of personal credibility with the creditor, lacks the skill set to do the deal or simply has been ground down to the point where they are a shadow of their former “negotiator” self.
Engaging a turnaround specialist is usually the best option. They can draw on their contact books to reach out to all manner of creditors. They will often negotiate ‘stand still’ agreements to buy breathing space so everyone knows where they stand. Cost- you can negotiate a fixed fee.
As with so much in life, time is money. If you don’t want to spend 3 years without a licence then you need to find the money. Informal arrangements are often more expensive than formal arrangements because you often have to pay more cents in the dollar and the negotiations can be labour intensive.
But what are you going to do without your licence?
Bruce Pasetti has vast experience in the area. Get some solid advice 07 3152 4402 or email@example.com