Do you operate a business that is suffering from a financial crisis?
Then you need to act immediately and seek professional advice.
Insolvency Services Australia offers a range of business debt solutions that will help you with your company debts such as Liquidation, Voluntary Administration and Receivership.
Each option has their advantages and disadvantages, which is why you should completely understand each and every solution before making a decision and determining which one best suits your needs.
A company liquidation refers to the winding up of a company’s affairs. There are two types of liquidation: Voluntary Liquidation and Involuntary Court Liquidation.
While both follow the same procedures (once a liquidator is appointed), a Voluntary Liquidation means that you are able to choose the Registered Liquidator that will oversee the liquidation process. This may help in giving you more confidence and ease of mind as you are given the option to choose a liquidator that you trust.
In comparison, an Involuntary Court Liquidation is where the court appoints a Liquidator of their choosing. As such you won’t have any control over who gets appointed.
Voluntary Administration is when an appointed Administrator takes control of the business while the future of the company is planned. This may result in one of these three options:
- The company director regains control after the administration ends; or
- The company is liquidated; or
- The company enters into a Deed of Company Arrangement (DOCA) and the debts of the company are settled on terms contained within the DOCA.
Another business debt solution that Insolvency Services Australia offers is Receivership.
This is when a Receiver is appointed by a secured creditor to assume control to ensure that the debt secured by them is repaid in priority to other debts.
If you would like to learn more about corporate insolvency and your business debt solutions, please speak to ISA for free and confidential advice on our 24/7 toll-free hotline on 1800 003 883.