If your business is unable to meet its debts as they become due, it’s important that you act immediately and seek professional advice.
Here at Insolvency Services Australia, we offer a range of business debt solutions that will help you with your company debts. This includes Company Liquidation, Voluntary Administration and Receivership. Whilst each option has their pros and cons, it is important for you to understand what they entail, so that you can decide what is the most appropriate option for you.
For corporate insolvency, there are two types of liquidation: Voluntary Liquidation and Involuntary Court Liquidation.
Whilst both follow the same procedures after a liquidator is appointed, you have more say in a Voluntary Liquidation because you will choose the Registered Liquidator who will oversee the liquidation process. This can you give a great sense of comfort as you can choose a trusted liquidator.
On the other hand, an involuntary Court Liquidation is usually when a creditor applies to the court for an order that your company be wound up. In this case, the court appoints the Liquidator, meaning you will have no control over who gets appointed.
A Voluntary Administration is appropriate for a business that is still trading but is struggling with the burden of debt. Once you appoint a voluntary administrator you can submit a proposal to your creditors to reduce the level of debt which is known as a deed of company arrangement. This is a cost effective and legitimate way to reduce debt so your company can continue to trade into the future (subject to creditor acceptance).
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.