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You’ve heard about Insolvent Trading
What does it mean in plain English
At Dissolve we are experienced in providing a range of solutions. We’ve listed a few below.
But there are a whole range of possibilities.
The Stick
The stick – If a company is insolvent then a director may be personally liable for debts that the company incurs.
So what? A director will need to take action to ensure no further debts are incurred, or if they are, then they are paid in full.
The Carrot
The carrot – the Law provides a range of practical options for directors who suspect their company is insolvent.
So what? If a director acts quickly, those steps can save the business and protect the director from personal liability.
So, what does
“Personal Liability” mean?
The big benefit of trading a business in a company structure is, if the business incurs a debt, the debt belongs to the company and not the director personally.
Personal Liability is where a company’s debt is made to be the directors personal debt.
If a company trades whilst insolvent, any debts the company incurs whilst it is insolvent, become the directors personal debts. The director becomes personally liable for those debts.
Does that mean your house is potentially on the line – yes!
That sounds bad!! Are there solutions?
Absolutely! There are a number of actions that can be taken to either avoid the personal liability or reduce its impact.
But the opposite is also true – if you do nothing then you, as the director, are likely to be personally liable for debts incurred by the company.
Dissolve Provides Free Advice
How does Dissolve provide the advice
FAST, EASY AND
CHEAP
FREE
PHONE ADVICE
AUSTRALIA – WIDE
SERVICE
Our Solutions
What sort of solutions are there?
At Dissolve we are experienced in providing a range of solutions. We’ve listed a few below.
But there are a whole range of possibilities.
Voluntary Administration
Saving your company and
avoiding personal
liability through a Voluntary
Administration.
Restructuring
Restructure the company
which could involve using “Safe
Harbour” legislation or
implementing asset protection
strategies.
Liquidation
Sometimes we liquidate
the company or there
is a sale of the business
to better protect the director.
Still confused?
Yes that’s understandable. It’s a complicated area. In fact, we’d say you are unlikely to be able to understand all of the issues yourself. You will need advice from an insolvency expert.
Why Choose Us?
Expert advice from experienced liquidators
At Dissolve, we specialise in providing advice to small and medium size companies and directors of those companies.
Over each of the last 8 years we have provided advice to over 300 directors – we have the experience and industry knowledge to know the best way forward.
In around 50% of calls we receive from directors, we are able to provide free advice over the phone that gives the director a specific way forward – that is we are not there to sell our services – we provide genuine advice for the situation.
If we do recommend you use our services we will be clear on what that will cost you – in most cases we’ll provide a specific fixed quote so you know what it will cost, what we will do for you and what will be the potential savings to a director and their company.
Contact Us
Liquidation Law can be a complex area and circumstances vary, so we recommend a telephone call for your initial consultation. We will then gladly meet you or just confirm our advice and quote in writing.
Please either give us a call or submit the form and we will get back to you.
