If you’re thinking about pausing, changing or closing your business due to the current economic conditions, be wary of untrustworthy advisers who may recommend inappropriate or illegal behaviour.
This could include illegal phoenix activity, where businesses intentionally remove their assets prior to winding up so that they can be used in a copy of the original business.
Look out for red flags:
- people you don’t know cold calling with advice
- unsolicited letters, emails or phone calls after you’ve been through court action with a creditor
- advice to transfer assets to a third party without payment
- refusal to provide advice in writing
- advice suggesting they have a sympathetic liquidator who will protect your personal interests and assets
- advice to withhold certain records from the bankruptcy trustee or liquidator
- advice to provide incorrect information to authorities
- advice to deal with the liquidator or trustee on your behalf.
If you’re thinking of pausing, changing or closing your business, contact one the team at Arum Advisory