Bankruptcy and Insolvency Helpline in Australia

Concerned or have questions about bankruptcy? Call our Sydney helpline today. All calls to our helpline are free of charge.

Both bankruptcy and insolvency have a similar meaning within Australia that is a debtor who has insufficient resources to repay their debts. The big distinction within Australia is that bankruptcy refers to a 'natural person' whilst insolvency relates to corporate entities.

What happens if you are facing insolvency

If you are a director of a company and your company is trading whilst insolvent or you believe that it may become insolvent in the near future then you need to seek professional advice immediately. There are severe penalties including criminal penalties for trading whilst insolvent.

If you act reasonably quickly then an option that may be available to you is voluntary administration. With voluntary administration a company will enter into a Deed of Company Arrangement (DOCA) with its creditors. The DOCA will be a binding agreement that sets out how the creditors of the company are to be paid, what assets need to be realised and how the company will eventually be released from the DOCA. Once the DOCA has been satisfied by the administrators and the creditors repaid the company will be handed back to the directors (unless the DOCA specified that the company was to be wound up).

If you don't go in to voluntary administration then it is likely that either the courts or your creditors will put the company into liquidation. Call our Sydney helpline for more information.

We Can Help

JLA Insolvency & Advisory are a Sydney based independent boutique insolvency practice that deals with a huge variety of clients ranging from small private companies to large listed entities. If you believe that your company is potentially facing insolvency then you should contact us immediately for a no obligation discussion in respect of how we can help you.

For more information call our helpline. All calls to our bankruptcy helpline are free of charge.