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Frequently Asked Questions about Liquidation

We have collated the most frequently asked questions in one place to help you find quick answers to important matters.

Each case is different, depending on the total debt of the company, and if the company has any assets of value.

We can get your company into liquidation within 24 hours. We will need to get some company information from you, and then the process starts.

We will email you with some basic company information required, and then we provide an appointment document that the director signs.

Yes, your credit file is flagged. You can still obtain finance however, but it is of course dependent on your financial position

In most cases, NO, you are not liable for unsecured debt with creditors including the ATO – the debt goes with the business. There are some expectations such as Super and potentially PAYG with the ATO, depending on you history of lodging BAS’s. You of course also need to be aware of any Bank debt you have that may be secured or guaranteed by you personally, and leases and/or personal guarantees for other debt such as a vehicle.

Liquidation is not bankruptcy. A company is a separate legal entity to a director. This means that company directors are not automatically liable for any outstanding company debts. The credit rating director of a company that enters Voluntary Liquidation will not be affected so long as the company was trading solvent. Any defaulted personal guarantees will be marked against your credit file.

The short answer here is YES. You can be a director of another company now or in the future but there are occasions where ASIC can ban an individual from being a director. This happens if someone has been a director of a number of failed companies or been found guilty of wrongdoing in the past.

YES. This is still dependent upon your financial circumstances and lending criteria at the time of applying for finance. There are questions relating to the directorship of liquidated companies on almost all applications.

In most cases, you will be asked for an explanation, but this is usually not a determining factor in your ability to obtain finance via a successful application. It may be as simple as finding a less risk-averse lender.

NO, you cannot. The company is already in the winding-up process which means you will have to take alternative action. Options include:

  • Pay the bill in full and seek to have the wind-up proceedings dismissed
  • Do nothing. The business will be wound up
  • Go into Voluntary Administration

For further details, read more

As the director of a company you are protected by company law and therefore have limited liability to its debts. In almost all cases you will NOT lose your home. Any unsecured company debt should not affect your personal assets. There are however specific areas that affect assets such as your home. This includes any company loans that have been secured by a personal asset such as your home.

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If you haven't found the answers you are looking for, do not hesitate to reach out to us to receive free professional advice. We deal with a wide range of cases, including liquidation, insolvency, voluntary administration, and personal bankruptcy. Send us a direct message and we will be in touch with you within 1 hour.

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Company Liquidation Resource Centre

Want to learn more about Business Liquidation? Check out the Australian Debt Solvers Resource Centre which features in-depth articles written by industry professionals.

Company Liquidation Latest News

Stay up to date with the latest news from some of the foremost expert liquidators Australia has to offer. From case studies to changes in legislation you will find it all in Liquidation Latest News.