When your business situation looks grim, it’s time to act
As a company director, you already know that insolvency can lead to serious consequences if not dealt with quickly. It’s against the law to knowingly trade a business when it can’t pay its debts, so continuing along that path could be disastrous. But we can help.
By opting for a Creditors Voluntary Liquidation (CVL), you can step out of your responsibilities almost immediately and within a short time you can begin new endeavours.
A Creditors Voluntary Liquidation is the most common insolvency process, and once it is initiated it allows the winding up procedure of a company to begin without the need for an intervention from the courts. A CVL wraps a company up in an orderly fashion and aims to distribute the company’s assets to its creditors as well as seeking to identify why the company failed. It is fast, effective and if done soon enough, can save you from all kinds of trouble.
Making the decision to enter liquidation is hard
Deciding to move your business into a Creditors Voluntary Liquidation can be an incredibly emotional and stressful experience. You have worked hard and tried to make your business successful but, for whatever reason, you are struggling to make your company work and you owe creditors money that you believe you will be unable to pay.
In this instance, it is the correct decision to enter into liquidation and begin the process of moving on with new opportunities.
It is important to note that moving into liquidation doesn’t necessarily reflect poorly on you as an individual or a business person. Not all businesses are successful, and many do unfortunately fail.
Whatever the reason for your company’s difficult situation, we here at Australian Debt Solvers can assist you through this challenging time, and we will help you to navigate the liquidation process and make it as quick and stress-free as possible.
How to liquidate your company in 3 simple steps
Placing your company into a Creditors Voluntary Liquidation is quick and simple.
Here’s how it’s done:
Get in touch with us below and let us know your situation. Our professional team of consultants will go over your options and if it’s a liquidation that you need, we’ll act quickly on your behalf.
We’ll prepare Appointment Documents that the directors can sign to declare that the company is insolvent. A meeting of the shareholders must also then be called to advise them of your course of action.
Your shareholders must agree to appoint us as your liquidator and from that point on, we’ll handle the rest.
Want to talk to us about you financial situation?
Help for a Distraught Director and Accountant
Australian Debt Solvers were extremely competent and spent a great deal of time answering our questions. Everything was set out clearly and in a helpful manner with easy to understand instructions. Advice was given with the greatest consideration. I would strongly recommend them to anyone who needs help with company liquidation.
They answered every question we asked within a very short space of time. Nothing was too much trouble and they were very understanding – knowing how hard it is for a business to come to this decision.
I have told other Accountants about the great service they provide.
Keeping a profitable business, after the Court had appointed a Liquidator
We spoke to ADS after our company had already been wound up by the courts. We wanted the assets from the liquidated business, but didn’t know how to get them. We called Debt Solvers and they took care of everything….they got an “Authority to Act” from us, spoke to Deloittes who were the Liquidator, negotiated the sale of the assets, set up a new company for us…….and we are now going from strength to strength. Money was well spent with ADS!
Gary & Jo, UFIF Engineering
Turning around a company that owed too much to the Tax Office
Our company is a Medical recruitment agency with mostly Government based clients. We had a good sales forecast……but were heavily weighed down with debt, mostly from the ATO. I met with Debt Solvers….when I thought I was going to lose the business. They talked me through Voluntary Administration where you offer creditors a reduced amount, and you pay the reduced debt over 12 months – which is called a Deed of Company Arrangement. Our creditors agreed on the offer, and we have gone from strength to strength. ADS even organised a Debtor Finance company to assist with our cashflow at a reasonable rate. Considering I thought we were going to lose the business – an great result!
Shaun, Beat Medical
We’ve helped thousands of Australian Business Directors with the Lowest Price Liquidations in Australia!
Australian Debt Solvers takes up to 10 enquiries per day from Australian Companies that have debt issues. A lot of these have under $100,000 of unsecured debt, with no company assets, and simply need to close the company down. Debt Solvers does this for a fair price, efficiently and with empathy for the Director. It’s a service that has proven extremely useful for Directors, right across Australia.
A low cost Voluntary Administration service to get companies back on their feet
Australian Debt Solvers hears from a lot of Directors, where there company could be profitable and trading well, but they are being tied down by too much debt – of which the majority is usually the ATO. We have worked through with hundreds of companies – a Voluntary Administration – where we negotiate and reduced amount of debt to creditors over usually a 12-24 month period. This is called a Deed of Company Arrangement….and is an extremely effective method of assisting companies to “get back on their feet”. Debt Solvers charges a fair price through this process…….and it’s great to see a business go from strength to strength after this service.
Blows competition out of the water
Firstly Dave showed compassion when the other liquidator was very impersonal. Secondly Australian Debt Solvers are helpful – there was stuff Dave didn’t have to tell me as he is just dealing with our company not our personal affairs. However he answered all my questions which makes it easier and gives me a lot more confidence that we are not breaching rules as we wind down. Thirdly, the fee is so much cheaper than a traditional insolvency practice. So far I am very impressed with Australian Debt Solvers. I will post another review once we have completed the process.
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Business Liquidation FAQs
Business Liquidation FAQs
Also known as a CVL, a Creditors Voluntary Liquidation is the most common insolvency process and occurs when the members of a company determine that the company can no longer maintain its debts and it is insolvent (or about to become insolvent).
Serious legal consequences are incurred for directors that knowingly continue trading as an insolent company. Initiating a CVL allows the winding up of a company to avoid any legal ramifications or any Court intervention. A CVL allows the company to wind up its affairs in an orderly fashion and its goal is to distribute the company’s assets to pay back its creditors.
A CVL will also begin a process of investigation as to why the business was unable to pay its creditors and why the business failed.
To find out more about the liquidation process, read our guide here.
What happens to directors during a CVL?
Deciding to initiate the Creditors Voluntary Liquidation process is a big decision, but may well be the correct one to make for your situation. However, you should understand that this will mean that you and other directors of the company will be affected. It goes without saying that once the liquidation process is complete, the company will cease to exists, but what happens to its directors?
During liquidation, the liquidator is required to investigate why the company has failed, this means investigating its directors to determine if they are guilty of wrongfully trading. Directors of an insolvent company are put under the microscope and they are required to provide any information that the liquidator deems to be relevant.
If a director is found to be at fault they will be held accountable and can face serious legal action including: being personally liable for the company’s debts, banned from acting as a director for any company for up to 15 years, or (in more serious cases) jail time. It’s best to protect yourself as a director and your business by entering Creditors’ Voluntary Liquidation when you become aware of insolvency trading issues.
What is the process for a CVL?
A Creditors Voluntary Liquidation can often sound like a daunting and complicated process. However, Australian Debt Solvers are here to ensure the entire procedure goes ahead as smoothly and as stress-free as possible. For more information on the CVL process contact us on 1300 789 499 for a no obligation consultation.
As a guide, the process for a CVL can be explained in 4 steps:
- A registered liquidator is contacted. The directors of the company contact an insolvency firm and the company will be appointed a registered liquidator. During the initial meeting between the liquidator and the company the company will be asked basic questions to determine if business liquidation is the correct path to take.
- Alternative options are explored. If it is determined that the directors do not wish to cease operating but are concerned with their financial situation, the liquidator will explore viable alternatives that may save the business.
If no alternatives are found, the liquidation of the company will proceed.
- Creditor’s meeting held. Once a CVL is decided, the liquidator will prepare a report and circulate this to all known creditors. The report will outline a liquidation date (typically 14 days from the date the report is sent) and only creditors that meet specific criteria can request a physical meeting.
- Assets are liquidated. The liquidator will continue to be in contact with creditors and work to resolve any issues related to creditor claims. The liquidator will take appropriate actions to distribute the company’s assets in an attempt to pay back creditors.
OUR KEY CREDENTIALS
- In-house ASIC Registered Liquidators, Administrators and Receivers
- CPA and CA Qualified Accountants
- ARITA (Restructuring & Turnaround Association) memberships in-house
- Over 40 staff
- Offices in Sydney, Melbourne, Perth, Brisbane, Gold Coast, Adelaide, Townsville and Darwin
- One of Australia’s fastest growing insolvency firms
- Dedicated enquiry team with 24/7 service
- National legal network and expertise
- Diverse funding and finance options if required
- Rated 4.9 out of 5 on service review site Trust Pilot