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As the Director – am I going to lose my home if I liquidate the company?

November 3rd, 2015

As the Director – am I going to lose my home if I liquidate the company?

The most common question we are asked when clients contact us for advice is – will I lose my home if I liquidate the business.

Well, the short answer is NO. I have seen hundreds of liquidations where Directors keep their homes.

Company liquidation is by definition about your company and not your personal assets.

You as the Director are protected by Company Law – and have limited liability for its debts – hence the Pty LTD

So for all UNSECURED company debt – this should not affect your personal assets subject to some considerations

What you need to be careful of is:

  1. Does the company have a secured loan with eg. A bank…….and is that loan secured by you or your assets?
  2. Have you signed any personal guarantees or director guarantees with suppliers or for a lease…….as you will be personally liable for this debt
  3. What is the current status with the ATO – have they issued you a Director Penalty Notice – as again, there may be some personal liability here? If you have outstanding Pay As You Go Tax or super then you need to get on top of the situation quickly
  4. Have you recklessly incurred unpaid debt with your creditors when you should have known the company could not afford to continue trading and you knew the company was insolvent?

You need to fully understand these major 4 things prior to liquidating a business. But you need to act quickly!

Get Free Expert Advice Now

Regardless of what you’re currently facing, the first step is to discuss your situation with a qualified expert today, so you can make the right decisions moving forward. But don’t delay. The faster you act on your own behalf and take charge of the situation, the better your outcome could be. It’s FREE to talk with us, so why wait?

Click here to contact us or call us now on 1300 789 499.

If Your Business Finances Are Out Of Control, We Can Help.
Call us on 1300 905 107 or Click Here For More Information.

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David Hill
David has over 15 years in the insolvency industry – advising clients through restructuring of their business. His clear, “straight up” style provides clients with a strong direction of what they need to do, and how the process will work. As importantly, he brings empathy to the process – which is essential at a “high-stress” time for clients.

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