Areas of Law » Business and Commercial Law » Corporations Law: Bankruptcy and Insolvency

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Insolvency simply means the inability of an individual or business to pay the debts that they owe at the time they are due. When a company is insolvent the legal procedures are dealt with under the terms of the Corporations Act. When an individual is declared insolvent the legal procedures are carried out under the Bankruptcy Act.

Perry Legal have a great deal of experience in assisting clients through their bankruptcy and insolvency issues, and are committed to finding the correct measures to take for your specific situation. Whether you are an individual or a corporation; whether you are initiating the insolvency case against another party in order to reclaim debts or are facing insolvency procedures yourself, you can be sure that we will treat your case as unique and focus on achieving the best outcome for you.

Below is a brief explanation of some common insolvency situations:

You are owed money by a company that has become insolvent

As a creditor you have the legal right to apply for an order to have a company wound up if your debtors have not met their payment requirements. If successful, a liquidator will be appointed and the company’s debts apportioned to its creditors. While you are not necessarily prioritised, action of this kind does usually result in the creditor being paid the debts that are owed to them. We will guide you through all the necessary procedures, making sure that you are certain of your rights and your debtor’s obligations.

Your company is having insolvency charges pressed against it

In this situation it is imperative that you seek legal advice as soon as possible. Under the Corporations Act you have 21 days in which to pay your debts or to dispute the charges. Perry Legal can provide you with expert assistance in this situation, helping you to decipher whether you have reasonable grounds to dispute the proceedings or helping you to resolve your debts in the most agreeable way to all parties.

Voluntary Insolvency

If you face a situation where your company cannot pay its debts then it is essential that you stop trading, and you may be in a position where entering voluntary insolvency is your most sensible option. Entering voluntary insolvency is not the same as liquidation; it means the process of assessing the viability of your company, attempting to find ways in which to save it and address the debts it owes. If you suspect that your company is in a position where it may need to enter voluntary insolvency then please contact Perry Legal today. We will be happy to assist you assess the viability of your company and offer advice on the best way in which to proceed.

You are an employee of a company facing insolvency

As the employee of a company facing insolvency you are protected under the Corporations Act and are entitled to receive all payments owing to you. If you find yourself in this situation Perry Legal will happily help you to understand your rights and the processes that you may have to go through to implement them.

Perry Legal are extremely experienced in dealing with all areas of bankruptcy and insolvency. If you have any queries regarding corporate or personal insolvency, be you a creditor or a debtor then our friendly, knowledgeable team will be glad to assist. Call 02 49404602 or email info@perrylegal.com.au