Insolvency Lawyers
We recognise the stress and angst that comes with insolvency. We offer advice that is strategic, honest and direct to guide our clients to a better position as quickly as possible.
We can provide advice to directors on their duties and responsibilities when companies are facing an uncertain future. We provide practical guidance on the steps individuals need to take to avoid personal liability.
We will guide you through all aspects of insolvency scenarios, corporate distress and distressed investments, working with you to develop and implement the right strategy to achieve the best outcome.
Our Expertise includes and is not limited to:
- Wind-up applications
- Voidable transaction claims
- Insolvent trading claims against directors
- Retention of title claims
- Personal Property Securities Register (PPSR)
- Deeds of company arrangement
- External administration issues
- Assisting directors in relation to directors’ duties
- Voluntary administration and liquidation
- Etc…
What is Insolvency?
Insolvency is when a company or person can’t pay their debts when they are due, they are deemed to be insolvent. There are several options available to an insolvent company or person:
- The most common corporate insolvency procedures for an insolvent company are liquidation, voluntary administration and receivership.
- The available personal insolvency procedures for an insolvent person are bankruptcy and personal insolvency agreements.
A company director has a responsibility to ensure that the company does not trade while it is insolvent.
Different types of corporate insolvency
The three most common corporate insolvency procedures are liquidation, voluntary administration and receivership:
- Liquidation Liquidation is a process which results in a company being shut down. All the company’s assets are sold, and the money raised is used to repay its debts. The term ‘winding-up’ is also used.
- Voluntary Administration The purpose of a voluntary administration is to rescue – if possible – a company that’s in financial difficulty. A voluntary administrator is appointed who takes control of the company and manages its affairs until the creditors decide the company’s fate.
- Receivership Receivership is a process which entitles a secured creditor to appoint an insolvency practitioner as a receiver to a company. The receiver’s role is to take control of the secured assets to repay the secured debt. The loan agreement gives the creditor a right to appoint a receiver under certain conditions.
The Liquidation Process
The most common form of liquidation is Creditors Voluntary liquidation, the process is as follows:
1. Company is unable to pay its debts.
2. A liquidator is appointed.
3. The liquidator publishes a notice on the ASIC Published Notices website.
4. Creditors are notified of the liquidation.
5. Creditors’ meeting.
6. The administration of the liquidation begins.
This usually includes:
• selling or closing the business
• identifying and selling the company assets
• contacting and receiving claims from creditors
• sending progress reports to creditors
• investigating possible criminal offences or inappropriate transactions
• making payments to creditors (dividends).
7. Completion.
What to Expect when working with PB Lawyers Australia
Here are some reasons why people choose us:
- Punctual and Precise: From your first consultation until a successful solution, we will work hard to resolve your matter fast and with precision. We answer all enquiries quickly as we understand how stressful legal pressures can be. And more often than not, time is crucial, so we act promptly. Having the right lawyer in your corner is the most important aspect when dealing with legal matters, so as we are fast, we are also as experienced and thorough.
- Understanding and Perceptive: We understand that being involved in any legal matters can be stressful. So, we take the time to learn your situation and get a good grasp on all the relevant factors and use that information to work for you in the best way possible. We’re here to guide you every step of the way, we will listen to you, offer advice, answer any questions you have and ensure that you have all of the information you need to make an informed decision every time.
- Affordable and Reasonable: There is no surprise in saying that legal fees can be expensive, however, engaging a lawyer may be less expensive than you realise. Doing so will most definitely reduce the amount of stress and the amount of time in dealing with your legal matters. We offer flexible billing arrangements for our services, including event billing, time interval billing and fixed rate fees. We’ll also be transparent with you about the costs surrounding resolving your matter and provide you with a quote once we’ve had a consultation with you and understand your situation.
- Experienced and Knowledgeable: Each member of our trusted team has years of experience in the areas of law they each practice, coming from different cultural and societal backgrounds. This allows us to understand your situation more easily and work together to find the best outcomes for your situation. Like we said before, no two situations are the same, but our vast range of experience means that we can certainly help you.
Our Insolvency Law Solutions include:
Assisting You Gather Relevant Documentation
Drafting Required Documents
Giving You Advice on the Best Method to Proceed
Providing a Free First Consultation
Represent You in Court
Appointment of Receivers, Liquidators and Administrators
Representation to Trustees of Bankrupt Estates
Corporate and Personal Restructuring
Recovery Options for Creditors, Including Secured Creditors
Client Testimonials and Reviews
Frequently Asked Questions
How long can a debt be chased in Australia?
In Australia, the statute of limitations for chasing a debt is generally six years from the date when the debt became due and payable.
However, this period can reset if you make a payment or acknowledge the debt in writing.
What is a creditor's petition?
A creditor’s petition is an application by a creditor, usually to the Federal Circuit and Family Court of Australia, seeking for an individual to be declared bankrupt by the court and for a bankruptcy trustee to be appointed to manage the individual’s bankrupt estate for the benefit of the creditors.
What is a director's liability for insolvent trading?
If a company is insolvent but continues to incur debts to its creditors, its directors can be held personally liable for those debts in a liquidation of the company. This can happen if the directors are deemed to have been aware of circumstances that would reasonably lead them to suspect insolvency, and yet they allowed the company to continue to incur debt. In instances where insolvent trading is considered dishonest, directors may be subject to criminal proceedings.
What is a proof of debt?
Proof of debt is the method by which a creditor of a company or an individual notifies the administrator, liquidator or bankruptcy trustee of the amount of the debt owed to the creditor and how that debt arose. Creditors that lodge a proof of debt are generally entitled to vote on key decisions and to receive a distribution if one becomes available.
