Articles - Australian Debt Solvers

Is It Illegal To Trade While Insolvent?

Companies are a unique type of legal structure in that they are a separate legal entity and provide limited liability. However, there are certain situations in which the corporate veil can be lifted and directors are held personally liable for the company’s dealings. This commonly occurs when a company continues trading whilst insolvent. Directors have […]

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Preparing For 2015/16 Tax Time

It’s that time of the year when businesses across Australia collate their records and review their accounts in preparation for tax lodgment. While tax time is typically seen as a laborious time, it’s actually a great opportunity to find tax savings and avoid costly mistakes. Resolve to get your tax return lodged sooner rather than […]

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Can The ATO Still Wind Up A Company If They’ve Paid Off Their Debt?

Unpaid tax debts can lead to serious consequences for businesses that are having problems keeping up with their tax debt. When it comes to enforcing debt, the ATO has a number of options, including pursuing wind-up proceedings in court. While the ATO will not pursue the wind-up course of action if a company has repaid […]

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Who Gets Paid First When a Company Goes into Liquidation?

During liquidation one of the key issues for both the liquidator and concerned parties is what will happen to proceeds, and the order of priority of debt. If you are a creditor to a company going into liquidation, you will be keeping track of the process to ensure you are paid what you are owed. […]

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How Does Tax Debt Apply To A Company In Liquidation?

Liquidation involves the orderly winding up of your company, and distribution of assets to creditors and shareholders. While debts to the Australian Tax Office rank with equal importance to those owed to other unsecured creditors in the event of liquidation, there are instances when company directors may be personally liable for the company’s outstanding tax […]

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Don’t Wait Until The 11th Hour In Wind-Up Proceedings

If your company is unable to make debt repayments or owes the Australian Tax Office (ATO) tax debt, the ATO and your creditors can issue a statutory demand. This demand requires you pay the debt within 21 days, or enter into a payment arrangement. If you fail to do this within the set time frame, […]

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What is a Statutory Demand?

If your company has incurred outstanding debts, your creditors have the option to serve a statutory demand against you. The statutory demand is a type of debt recovery tool that when served brings consequences for your business. When served with a statutory demand, you must act quickly even as you take the necessary time to […]

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How to Close a Business When Insolvent

If your business is unable to repay its debts, it could be insolvent. Closing a business can be a complicated and emotional time, but insolvent trading laws means directors should understand their options and make a decision as soon as possible. Seeking advice from insolvency professionals can make the process easier, help you stay fully […]

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How to Check if a Company is in Liquidation

Many businesses conduct checks on their suppliers, customers, debtors and investment partners as a matter of due diligence. While publicly available records are not as comprehensive as internal auditing, basic checks such as whether the business is in liquidation helps creditors stay informed. As a debtor company, if you are entering liquidation you will understand […]

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Is My Company In Trouble?

It has been reported that business closure rates are as high as 60 per cent for small businesses within the first three years of operation. Operating a business comes with uncertainties, and sometimes it can be difficult to pinpoint the exact signs telling you your business is in trouble. Whether you’re an owner, director, or […]

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