Frequently Asked Questions about Corporate Insolvency

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This is the most common question asked but the reality is that being charged with insolvent trading is rare. It is a complicated and costly action for a liquidator to pursue and there needs to be strong evidence of insolvent trading.

The best course of action is to get on the front foot early and get professional advice. Your focus should not be on whether you will be charged for insolvent trading, but rather on how to regain financial control and stability. Read More

If you have been served with a statutory demand, you have 21 days to act. Your main options are:

  • Pay the debt
  • Have the statutory demand set aside
  • Go into a payment plan to pay the debt
  • Do not pay the debt

Failure to pay the debt could lead to a Wind-Up notice. Those who are unsure of what to do should contact Australian Debt Solvers for a free consultation.

For additional information, Read More

A 21-day Director Penalty Notice gives you 21 days to act. This is regarding any outstanding PAYG or Superannuation Guarantee Charge debts. It is important to note that the 21-day period starts from the date on the notice and not from the day that you receive it. A failure to pay the notice could result in the company being placed in liquidation or voluntary administration. A Director Penalty Notice should not be disregarded or taken lightly. Directors should also be aware that payment arrangements can always be made with the ATO.

YES. Director Penalty Notice legislation outlines the way in which directors are made personally liable for company tax debts. This includes any of the company’s unpaid superannuation. Directors should be both aware and informed of their rights and obligations.

There are various penalties and consequences for insolvent trading. They include:

  • Civil penalties up to $200,000
  • Compensation proceedings for amounts lost by creditors. Can be initiated by ASIC, liquidator, or creditor
  • Criminal charges: fines up to 2,000 penalty units ($444,000 on or after July 2020) and up to 5 years imprisonment.

Read about the 5 main things about director penalty notices.

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Corporate Insolvency Resource Centre

At Australian Debt Solvers, we do more than just provide solutions for financial problems. We have taken it upon ourselves to provide educational material on all areas of corporate insolvency including liquidation, voluntary administration, and receivership. Take the time to explore our Research Centre and expand your knowledge.

Corporate Insolvency Latest News

Wondering what is happening in the world of corporate insolvency? Find out about any recent legislative changes and how they make have an impact on your business. Stay ahead of the curve and up to date with the latest corporate insolvency news.