INSOLVENCY LAWYERS ROCKHAMPTON
Insolvency is the legal term for the point at which you or your business is faced with insurmountable debt.
There is inherent risk in buying and operating any business. In a best-case scenario, these risks will be identified early on and you will have strategies to address any legal or financial difficulties before they spiral out of control.
In a worst-case scenario, your business may be forced to close due to insolvency. What happens during this time depends on which business structure you’ve chosen.
Personal insolvency procedures will apply to businesses operated as sole traders or partnerships. This means that if you (and/or your partners) can’t repay business debts, you will have three options, depending on your specific circumstances. These are entering into a debt agreement, entering into a personal insolvency agreement, or voluntary bankruptcy. Of these, voluntary bankruptcy is the most drastic because it can last three years (although this period may soon be shortened) and has significant consequences.
On the other hand, companies facing insolvency are dealt with differently. In many cases, insolvency results in the closing of the company through court liquidation, creditors’ voluntary liquidation or members’ voluntary liquidation. This is a controlled process in which any relevant activities end and assets are sold to pay creditors. During this time, any remaining sums of money are allocated to the shareholders. Companies faced with overwhelming debt may also go into voluntary administration or receivership.
If your business is struggling and potentially facing insolvency, we are here to help. Working with you and your financial advisors, we will find the best legal option to address your unique circumstances.
WE CAN ALSO ASSIST WITH:
- Business Structuring
- Business Acquisitions
- Business Succession, Shareholder & Management Agreements
- Commercial Leasing
- Commercial Property Conveyancing
- Hiring and Chattel Leases
- Partnerships, Companies & Trusts
- Banking and Finance
- Planning and Environment
- Mining Resource and Resumption
- Personal Property Security Register