Insolvency is challenging. It is deeply personal. We’ll work with you to get you through it.
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Getting advice early will give you options, and help us to help you.
We are experienced lawyers in insolvency and restructuring. That means we can help you to understand the legal risks you face when you or your business are in financial difficulty. We know that dealing with bankruptcy and insolvency is stressful, and there can be a lot at stake. That is why we are passionate about working with businesses of all kinds to find ways to work around, turn around and overcome difficult financial situations.
Our experience is important because we have a deep understanding of your challenges. We understand, and are qualified to give you advice on how bankruptcy and insolvency laws operate, what strategies actually work and how these can effect your planning. We will work with you to produce a plan which is commercially and legally viable. We do not gamble with your business, or your future.
At Insolvit, we specialize in turning financial turmoil into a roadmap for recovery. As a leading law firm in insolvency, personal bankruptcy, corporate insolvency, and insolvency litigation, we provide expert legal services tailored to the unique challenges of our clients in Sydney, Melbourne, and across Australia. Our experienced team is committed to delivering strategic solutions that protect your interests and guide you towards a stable financial future. With Insolvit, you can navigate the complexities of insolvency with confidence, knowing you have a partner dedicated to your success.
Liquidation
When a company is placed into liquidation, this generally occurs because the company is insolvent and because the company has no realistic chance of resolving its financial distress and becomes necessary to avoid additional financial and legal risks. This is usually because the financial situation of the business is dire and there is no prospect of restructuring or salvaging the business. A liquidation should be a last resort, and there are opportunities to avoid such a consequence. Sometimes, your creditors will have the power to liquidate your company.
Insolvent Trading
if your company incurs a new debt at a time where the company is insolvent, or where it is reasonable to suspect that your company is insolvent or could become insolvent because, you and other directors could be engaged in insolvent trading. Learn about what this means and how to avoid this.
Voluntary Administration
Sometimes, risks of insolvency and liquidation might be avoided early via a corporate restructure or voluntary administration. A corporate restructure can involve making changes to the legal and operational set up of your company. For example, this might include changes to ownership, management, leadership, shareholders, operations & policy, employee structures & roles, among other things. Voluntary administration involves the appointment of a voluntary administrator with the view to formally restructuring or selling the business.
Personal Bankruptcy
Sometimes, the way your business is structured, or, the contract you have signed for your business, might leave you personally vulnerable. this means that if your business is struggling, some creditors might look to you personally for payment which could expose your personal assets. Creditors might commence legal action against you personally if your business cannot afford to pay, or if it is liquidated. This might lead to a scenario where you are later exposed to bankruptcy proceedings. A bankruptcy proceeding means that a bankruptcy trustee might be appointed to take over your personal assets and sell them to pay off creditors. There are ways to avoid this scenario with early advice.
Understanding what things mean empowers you to make decisions. We help you make sense of the process, and the options.
Director Penalty Notices
When your company has failed to pay its taxation obligations, such as pay as you go withholding requirements (PAYG) or superannuation guarantee charge liabilities (SGC), the Australian Taxation Office (ATO) has the power to issue to directors of that company a Director Penalty Notice (DPN). A DPN will result in the directors of a company becoming personally and individually liable for any outstanding PAYG and SGC as well as any accumulated interest and penalties. All directors, including directors who have resigned, can receive a DPN notice and become personally liable.
There are two types of DPN notices: A Traditional Notice and a Lockdown Penalty Notice.
In the face of financial hardship, understanding your options is crucial. Bankruptcy in Australia is a legal process that can offer relief from debts and a chance to start anew. This article will guide you through the various bankruptcy options available, the process involved, and the alternatives to consider
Understanding Bankruptcy
Bankruptcy is a legal status for individuals who cannot repay their debts. It can release you from most debts, providing relief and allowing you to make a fresh start
The Bankruptcy Process
To declare bankruptcy, you must complete and submit a Bankruptcy Form. This can be done voluntarily or through a court process initiated by a creditor
Duration of Bankruptcy
Bankruptcy usually lasts for at least 3 years and 1 day, but this can vary depending on individual circumstances.
The Role of a Bankruptcy Trustee
A trustee is appointed to manage your bankruptcy, which can be the Official Trustee (AFSA) or a registered trustee of your choice.
Navigating Bankruptcy Options in Australia
Your Obligations and Restrictions
When bankrupt, you have certain obligations to meet and may face restrictions, such as limitations on travel and obtaining credit.
Alternatives to Bankruptcy
More Information
Contact us for advice.
Bankruptcy is a significant step with lasting impacts. Understanding all available options and their consequences is vital before proceeding
Bankruptcy is not the only option. Alternatives include:
Temporary Debt Protection: A 21-day reprieve from creditors.
Debt Agreement: A binding agreement to settle debts.
Personal Insolvency Agreement: A formal agreement to pay creditors.
Seeking Professional Advice
It’s essential to seek professional advice before deciding on bankruptcy. Financial counsellors can provide free, independent, and confidential help for simple or low debt matters, or you can contact our office if you have a more complex matter.
We have a rich understanding of what works, and, more importantly, what doesn’t
Not all advice in bankruptcy and insolvency is equal, and not all strategies are viable.
When your business or future is on the line, it can be hard to know who you can rely on for help. Cost also plays a part. We know that, sometimes, it can be hard to know who to trust. That is why we are open, clear and straight forward with you when it comes to what works, and what doesn’t work. There are no quick fixes to insolvency, regardless of what you might read elsewhere. Countless court cases attest to that. What you need is thoughtful and carefully evaluated advice that looks at the full picture.
Our experience is important because we have a deep understanding of your challenges. We know, and are qualified to give you advice on, how bankruptcy and insolvency laws operate, what strategies actually work and how these can effect your planning. We will work with you to produce a plan which is commercially and legally viable. We do not gamble with your business, or your future.
Understanding the options available
Corporate Insolvency
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Safe harbour advice and strategy implementation, working closely with an insolvency practitioner
insolvency and restructuring options
assessment of security interests
governance and directors’ duties advice
stakeholder management
contracts and negotiations
distressed debts and short term capital raising. -
Court ordered liquidation
creditor’s voluntary liquidation
member’s voluntary liquidation voluntary administration and deeds of company arrangement (DOCA).
defending against actions brought for voidable transactions under the Corporations Act 2001 (Cth) including: unfair preferences, uncommercial transactions, unreasonable director related transactions and unfair loans -
Defending against actions brought by liquidators for voidable transactions under the Corporations Act 2001 (Cth) including: unfair preferences, uncommercial transactions, unreasonable director related transactions and unfair loans.
Director liability and asset protection strategies including defending against director’s breach of duties and insolvent trading claims under the Corporations Act 2001 (Cth)
Advice in relation to director penalty notices (DPN)
Assisting you in relation to:
ASIC investigations
Public examinations
Breach of director’s duties and civil penalty proceedings -
Recovery actions in corporate and personal insolvency
Advice on execution of obligations for insolvency practitioners in external administration or as trustees in bankruptcy
ASIC funded or speculative* investigations and public examinations
Actions against directors -
Issuing creditor’s statutory demand and commencing applications to wind up debtor companies
Enforcement and recovery litigation
Enforcement of security interests
Appointment of receivers
Personal Insolvency & Bankruptcy
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