What is Insolvency?
Insolvency is a term used for both companies and individuals, but is more commonly used in relation to a business.
A business is said to be insolvent when it cannot pay its debts when they are due. It’s an offence if the directors continue to operate and incur more debts when a company is insolvent.
The personal insolvency procedures that apply to a person is known as bankruptcy.
What can you do if you’re faced with Insolvency?
If you or your company is faced with insolvency, seek the advice of a legal and accounting professional.
The team of accountants and lawyers at The Quinn Group have a sympathetic understanding of insolvency issues. We provide help in restructuring or loss minimisation.
We can assist you with all aspects and variations of insolvency, included but not limited to:
- Voluntary administration
- Insolvent trading
- Directors liability
- Schemes of Arrangements
- General Insolvency Advice
If you’re having cash flow issues or are unable to repay your debts, get in touch with us to see how we can help.
Getting advice as early as possible increases the likelihood of the company surviving. Call us on 02 9223 9166 or submit your enquiry here.
What are the implications of trading whilst Insolvent?
As the Director of the company, it is your duty to prevent your company trading if it is insolvent.
There are various penalties and consequences of insolvent trading, including civil penalties, compensation proceedings and criminal charges which can fall back on you as the Director.
Do you need further advice on the consequences of Insolvency?
For more information, call the Sydney Insolvency Lawyers at The Quinn Group on 02 9223 9166.
Alternatively, leave your message here and we will contact you.