Insolvency

If you are operating or running a business or selling or ending a business it is important to have reliable lawyers available from whom you can seek prompt and accurate advice in relation to any insolvency issues that may arise.

In these current financial times, a number of businesses are struggling to make ends meet.  It may be that debtors of your business are at risk of becoming insolvent or have already entered into liquidation.  On the other hand, it may be that your business is at risk of becoming insolvent.

If you operate your business via a company then you should urgently seek legal advice if you receive a Creditors Statutory Demand as this is the document that usually precedes proceedings being issued to wind up a company.  If within the timeframe stated on the demand for payment the amount the subject of the demand is not paid, or if application to set aside the demand is not made, then this could have severe consequences.  Similar issues arise if you are operating a business as a sole trader and receive a Bankruptcy Notice, but in those circumstances it is bankruptcy that is relevant.

Even if you have properly structured your business affairs for asset protection purposes, it is important to be aware that in some circumstances elaborate structures can be overturned by the Courts.  Directors are usually protected from being personally liable for the debts of their companies but they can in some circumstances have personal liability imposed upon them should they trade whilst insolvent.  If there is a risk that you are or may soon be trading whilst insolvent and if your business cannot pay its debts as and when they fall due then you should seek advice as soon as possible.

Although transfers of assets in advance to defeat creditors are often void as against the liquidator or administrator of a company, and against the trustee in bankruptcy of a bankrupt person, it may not be too late to protect assets so long as you act promptly.

DSC Lawyers provides legal services in a wide range of insolvency areas including:

• Issuing Creditors Statutory Demands
• Acting for companies in winding up proceedings against defaulting debtors
• Advising on Creditors Statutory Demands received by companies
• Acting for companies in winding up proceedings brought against them
• Advising in relation to the solvency of your company
• Advising in relation to voidable preferences including preferential payments to creditors
• Schemes of Company Arrangement
• Dealing with liquidators, administrators and receivers
• Approriate business structures for asset protection purposes
• Insolvency issues arising in commercial litigation and disputes
• Insolvency issues arising in debt recovery matters
• Agency services for other lawyers in insolvency matters and in bankruptcy matters

If you require legal advice on any aspect of the complex field of law of insolvency the dedicated lawyers at DSC Lawyers can assist by providing timely and accurate advice.

Links

• Australian Securities and Investments Commission: Australian Government website with a wealth of information including valuable insolvency information for companies
• Business Victoria: A valuable resource with information on selling or closing a business which includes insolvency information
• Business.gov.au: Australian Government website with information on selling, closing or winding up a business which includes insolvency information