We have collated the most frequently asked questions in one place to help you find quick answers to important matters.
ATO debt is split into four main areas: GST, income tax, PAYG, and superannuation. Company directors can be personally liable for PAYG and superannuation. If you have not lodged your Business Activity Statement (BAS), and your superannuation returns on time then you may be personally liable. The same applies to penalties or notices that have not been addressed.
In any of these circumstances, contact Australian Debt Solvers for a free consultation and professional advice.
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The difference between administration and liquidation revolves around the state of the company. The process of administration aims to help a company repay debts to avoid insolvency if it is a viable option. In comparison, liquidation is the process of selling all the company assets, repaying debts, and dissolving the company completely.
Read more about the difference between receivership, administration, and liquidation.
A company goes into administration after an administrator is successfully appointed. The administrator will assume the responsibilities of the directors and carry out their roles and responsibilities with the aim of paying off company debts.
If successful, the company will then be handed back to the directors. If unable to do so, the company will go into liquidation.
A company can be placed into voluntary administration by its directors, a secured creditor of a liquidator.
Whether it is through a DOCA or by returning to trading with insights from the voluntary administration process, going into administration can certainly help companies recover from financial strain. Part of the process of administration includes an inquiry into the business, its financial situation, organisational structure, and processes among other things. The administrator will then provide recommendations which will outline the prospects of a successful recovery.
It is a requirement that employees are informed by the administrator if a company has gone into administration. What happens to employees will then depend on the recommendations of the administrator.
A restructure and turnaround may result in a change in organisational structure which could have an impact on some employees but not others.
Conversely, a company may go into liquidation which would result in the company winding up and employees losing their job. In this case, employees can get help through the Fair Entitlements Guarantee (FEG).
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.
Want to learn more about Voluntary Administration? Check out the Australian Debt Solvers Resource Centre which features in-depth articles written by industry professionals. Updated regularly, you can learn about the process of administration and what it means for the parties involved.
Voluntary Administration is a challenging time for any company and all of the parties involved. Stay up to date with the latest news from some of the foremost expert liquidators Australia has to offer. Read case studies and expand your knowledge. It may help you make the right decision.