Insolvency

Welcome to Dissolve, Expert Insolvency Practitioners

We’re under lots of pressure, but is our company insolvent? How can I tell?

You may think that being under cashflow pressure is not the same as being insolvent! Well you could be wrong!

Figuring out if your company is insolvent is critical because there are many legal consequences that can follow if you get it wrong. The Corporations Act tells us that the overriding question a director must answer is:

Is the company able to pay all of its debts as and when they become due and payable?

Usually the answer to this question is not easy! Dissolve is here to help. Try our simple online assessment test: Is My Company Insolvent?

Next you should look at our page Insolvent Trading where we explain that you can become personally liable for debts of the company.

There are a number of possible solutions for an insolvent company. An easy way to find the right solution is to try our assessment tool: Ask IRA.

Once you have established your company’s solvency status, the type of solution required is then clear:

Insolvent Companies that can be saved require a Voluntary Administration. Voluntary Administration places an insolvent company in the hands of an independent person who can assess all the options available to generate the best return for creditors and shareholders. In some cases, the owner may be able to retain control or a part share in the business. In other cases the business can be sold as a going concern and employees may be able to retain their jobs.

For more information on Voluntary Administration, please see our sister site Restructuring Works, which provides advice to directors of companies in financial distress.

Insolvent Companies that can’t be saved require a Creditors Voluntary Liquidation. Sometimes a company is just not viable and must be liquidated. At Dissolve we can place a company into liquidation in a matter of hours and then complete the liquidation quickly, efficiently and at a very low fee.

Solvent Companies require a Members Voluntary Liquidation. Simplifying your corporate structure by disposing of redundant companies can eliminate annual return fees, reduce your cost of compliance and simplify the consolidation process, amongst other cost savings.

Liquidation is a complicated area so we have provided a bundle of information on this website – just see the menu above. If you can’t find what you are looking for there why not CALL US NOW for confidential, free advice.