Insolvency Proceedings in Australia – Understanding Your Options
Insolvency proceedings can be complex, but understanding your options is crucial if your business faces financial difficulties. Several options are available to companies and individuals, including debt restructuring, voluntary administration, liquidation, and personal bankruptcy.
At the Insolvency Advisory Centre, we have over 30 years of experience and can guide you through the complexities of insolvency. We help you understand insolvency and bankruptcy proceedings in Australia, including what they are, the process involved, and the role of insolvency practitioners.
Insolvency and Bankruptcy
Insolvency and bankruptcy are two related but distinct concepts. Insolvency refers to the financial state of a company or individual that is unable to pay their debts, while bankruptcy is a legal process that involves the liquidation of assets to repay debts.
Voluntary Administration
Voluntary administration is a process that enables a company to restructure its affairs and keep trading to avoid liquidation. The process involves appointing an external administrator who takes control of the company and assesses its financial position. The administrator then develops a proposal for a Deed of Company Arrangement (DOCA) that outlines how the company will repay its debts and restructure its affairs.
Company Liquidation Australia
When a company becomes insolvent, it may enter voluntary administration, which is a process that enables the company to restructure its affairs and avoid liquidation. Alternatively, the company may be placed into liquidation, which involves the sale of its assets to repay its debts.
Insolvency Proceedings
The insolvency process in Australia involves several stages, including voluntary administration, liquidation, or company insolvency. This is governed by several laws and regulations, including the Corporations Act 2001 and the Bankruptcy Act 1966. These laws provide a framework for managing financial distress and enable companies and individuals to restructure their affairs and repay their debts.
Insolvency Practitioners
Insolvency Practitioners are registered professionals who specialise in advising clients on insolvency law and practise. They can advise on the legal rights and obligations of companies and individuals facing financial difficulties and represent clients in insolvency litigation.
At the Insolvency Advisory Centre, our expert team of advisers with over 30 years of experience can guide you through the complexities of insolvency and help you understand the legal framework. We can advise on voluntary administration, liquidation, personal bankruptcy, and representing clients in insolvency litigation.
Need more information about insolvency?
“Understanding your legal rights in Insolvency proceedings is crucial if you face financial difficulties. Working with insolvency and liquidation practitioners can give you the advice and representation you need to navigate these complex legal areas and make informed decisions about your financial future.
The Insolvency Advisory Centre offers information and advice to help companies make informed decisions about their financial future by understanding the legal framework. If you need insolvency advice in Sydney, Melbourne, Brisbane, Perth or anywhere around Australia, we can help you make informed choices and choose your path to financial freedom. Contact us now to speak with one of our experienced bankruptcy specialists, and let us help you get back on track with a fresh financial start.”