If you have established that your company is insolvent, you should take immediate steps to ensure that it does not continue to trade whilst it is insolvent. Allowing a company to trade whilst it is insolvent can have serious consequences for a director.
You want to simply close the business
If you want to close the business or it was closed some time ago, a company liquidation is the most obvious option but before you proceed, be sure to thoroughly read our web site and give us a call to discuss. Every case is different so there is never a standard answer with Australian insolvency law.
You want to keep trading the business
If the underlying business is profitable or it can be restructured to become profitable and you want to keep on trading, you may wish to consider a Voluntary Administration. A Voluntary Administration is a very flexible way to restructure a company with significant levels of debt. A Voluntary Administration will allow you the opportunity to put a proposal to your creditors and if the proposal is accepted by the majority of creditors you will be able to continue trading. The proposal may include any of the following or a combination of both:
- A fixed contribution from the director;
- A contribution by way of
If the proposal is accepted, the company will trade subject to a Deed of Company Arrangement until the terms under the proposal have been finalised.
Call us today to discuss your needs
Australian Insolvency Services is a specialist insolvency firm. We handle all types of liquidations and business insolvencies. Our Registered Liquidator is fully licenced by the Australian Securities and Investments Commission and has over 20 years experience in the insolvency profession. Call us today and we will happily provide a quote on a no obligation basis.
Call now on 1800 210 073.