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If you’re a company director in Australia, and you’re having financial difficulty in your business and your company’s affairs, you may be considering working with registered liquidators to liquidate your company. But when you wind up a company and creditors deal with the liquidator of your company, do you have to declare bankruptcy? Will liquidation […]

If you are considering working with an insolvency practitioner and your company may go into liquidation, you might be wondering what’s going to happen to your personal assets. Do you have personal liability for debts taken on by your company? Will you have to declare bankruptcy, or will you lose your home if your company […]

The thought of liquidating can be scary. The idea of losing everything you’ve worked so hard for is terrifying. You don’t know what to expect. You don’t know the process. You probably don’t even know the right questions to ask to see if liquidation will help you. All you know is things are not working. […]

Under the Corporations Act, a company that is insolvent may be wound up in a number of ways.  The most common types of liquidation are:  A Court Liquidation Where an aggrieved creditor applies for a Court Order to have a compulsory liquidation imposed. The creditor or the Court selects the liquidator to wind up the […]

When a company is experiencing financial difficulties and is later placed into liquidation, the appointed liquidator must undertake a detailed forensic investigation into the affairs of the Company and the conduct of its officers to explain the reasons for the Company’s failure. This will include a determination as to whether the Company was allowed to […]

I thought I would pass on an article written by the solicitor, leading insolvency commentator and author of the Insolvency Bible, Michael Murray. Source: The perils of loud letters of demand A creditor being paid its debt following a letter of demand can be a Pyrrhic victory if the debtor ends up in insolvency and the […]

Recent reforms under the Insolvency Law Reform Act intended to make the replacement of an External Administrator/Liquidator easier for creditors to achieve but in reality, it may have had the opposite effect. In the past, liquidations instigated by the directors/shareholders required the appointee take the lead and put a resolution to creditors within 18 days […]

The war on unregulated and unlicensed Pre-Insolvency advisers is gathering pace with 120 ATO, ASIC and Federal Police raiding businesses and homes across Melbourne and on the Gold Coast. According to the linked article, the authorities are concerned that unregulated Pre-Insolvency firms are advising clients on how to avoid paying tax. ATO and ASIC raid […]

This press release highlights ASIC’s continuing war on Pre-Insolvency business advisers who offer advice to companies in financial distress. The bottom line is that business advisers must give lawful advice or they will be held personally responsible for the illegal actions of their clients. Business adviser guilty of aiding a director’s breach of duty An ASIC press release says a […]