THE CORPORATE INSOLVENCY LAWYER BRISBANE TRUSTS

We can help in any legal matter related to insolvency

SPECIALISTS WITH INSOLVENCY LAW, BOSS LAWYERS CAN HELP YOU NAVIGATE THESE COMPLEX LEGAL ISSUES

Our Brisbane Insolvency Lawyers regularly consult and work with liquidators and insolvency practitioners. This close relationship uniquely positions us to provide expert advice and support to company directors throughout the insolvency process.

For clear, strategic advice on insolvency matters, contact Boss Lawyers today. If you’re concerned about your personal exposure to liquidators in any capacity, we can help you:

Explore alternatives to liquidation
Reduce personal liability and avoid pursuit by liquidators
Manage secured assets and creditor negotiations
Navigate voluntary administration or liquidation processes

Nobody wants to face the prospect of a failing business, but with expert legal guidance, you’ll have the confidence to resolve your insolvency matters efficiently. Whether dealing with liquidation or potential bankruptcy, our focus is on protecting your personal interests while ensuring a smooth transition for your business.

EXPERT CORPORATE INSOLVENCY SERVICES

Anyone who needs a litigation lawyer in Brisbane knows there are many options available. Choosing the right commercial litigation firm can make all the difference in protecting your business interests. At Boss Lawyers, we put our clients first and ensure that we provide:

FOR UNDERSTANDING, EXPERT ADVICE ON YOUR INSOLVENCY, CONTACT BOSS LAWYERS TODAY.

UNDERSTANDING CORPORATE INSOLVENCY

What is Insolvency?

Corporate insolvency occurs when a debtor company is unable to meet its financial obligations as they fall due. This can be a result of cash flow issues, mounting debt, or unsustainable business operations. Recognising the early warning signs of insolvency is crucial to protecting both the company and its directors from legal consequences.

Insolvency vs. Bankruptcy

While insolvency refers to a company’s financial distress, bankruptcy is a legal process typically applied to individuals. For companies, insolvency can lead to voluntary administration, liquidation, or receivership, depending on the circumstances. In some cases, bankruptcy proceedings may be relevant for company directors facing personal liability.

Options for Insolvent Companies Under Commercial Law

VOLUNTARY ADMINISTRATION

Voluntary administration provides a structured opportunity for businesses to explore recovery options under the guidance of an administrator. This process allows directors to assess potential restructuring solutions, negotiate with the company’s creditors, and determine the best course of action for the company’s future.

LIQUIDATION

When recovery is not feasible, liquidation ensures an orderly wind-down of company affairs. A liquidator is appointed to sell assets, pay creditors, and dissolve the company in compliance with the Corporations Act. Liquidation can be voluntary (initiated by directors or shareholders) or court-ordered.

RECEIVERSHIP

Receivership occurs when a secured creditor appoints a receiver to recover outstanding debts. The receiver manages the company’s assets to repay creditors, often prioritising secured lenders. Unlike liquidation, the company may continue to operate under receivership, depending on the receiver’s strategy.

DIRECTOR RESPONSIBILITIES & PERSONAL LIABILITY RISKS

Director’s Duties Under Insolvency Laws

Company directors have legal obligations to act in the best interests of creditors when insolvency is suspected. Failing to uphold these duties can result in severe penalties, including personal liability for company debts.

Avoiding Personal Liability for Insolvent Trading

Insolvent trading laws prevent directors from continuing operations while knowingly unable to meet financial obligations. To mitigate risk, directors should seek legal advice at the first signs of insolvency and explore restructuring or voluntary administration options.

Responding to a Statutory Demand or Winding-Up Notice

A statutory demand is a formal request from a creditor for payment. Ignoring this demand can lead to a winding-up application, forcing the company into compulsory liquidation. Directors must act quickly to challenge or resolve the demand to protect the business.

Dealing with Creditors, Liquidators & Debt Recovery

Negotiating with Secured and Unsecured Creditors

Engaging proactively with creditors can lead to better outcomes for both parties. Negotiation strategies may include debt restructuring, extended payment terms, or voluntary administration to formulate a formal arrangement.

Debt Recovery & Insolvency

Unpaid debts are a significant contributor to corporate insolvency. Companies struggling with cash flow due to non-paying clients may face financial distress, making proactive debt recovery essential. Legal avenues for debt recovery include issuing creditor’s statutory demands, engaging debt collection agencies, and initiating court proceedings. Additionally, when a debtor company enters insolvency, liquidators may pursue outstanding debts on behalf of creditors to maximise returns.

If your business is facing difficulties in recovering debts or being pursued for unpaid obligations, seeking legal guidance early can help you navigate these challenges effectively.

What to Do if Pursued by a Liquidator

Liquidators have the authority to investigate transactions, recover assets, and pursue directors for insolvent trading or voidable transaction claims. Seeking legal guidance can help directors minimise personal exposure and defend against unwarranted claims.

Strategies to Protect Personal Assets

Proper structuring of personal and company assets can help shield directors from insolvency-related claims. Boss Lawyers can advise on asset protection strategies to reduce financial risk in the event of company insolvency.

How Boss Lawyers Can Help

Our Expertise in Insolvency Law

Boss Lawyers specialises in corporate and commercial insolvency, providing strategic advice to company directors facing financial distress. Our team works closely with liquidators, administrators, and business owners to navigate insolvency matters effectively.

How We Work with Directors, Liquidators and Businesses

We offer tailored legal solutions, including:

Insolvency risk assessments and legal compliance guidance
Representation in negotiations with creditors and liquidators
Assistance with voluntary administration and liquidation processes
Defence against insolvent trading claims

Legal support for corporate debt recovery

OUR CLIENTS ARE OUR PASSION

Mark Harley is an insightful and innovative mover and shaker who will leave no stone unturned in his continual quest to achieve the best possible outcome for his clients. Give yourself a head start by having Mark on your team.

Mark Harley is trustworthy and reliable. Consistently he looks at all the possibilities and cards available to him to support his clients throughout the whole process.

Mark Harley and I have worked on a number of employment and industrial relation cases. I have found Mark works hard to promote and protect the interests of his clients to achieve the best possible results.

I own a boutique building company. It is so important to have a smart, accessible lawyer on your side. I regularly seek advice from Mark Harley from Boss Lawyers to ensure compliance with the law and mitigate risk. I have no hesitation in recommending Mr Harley or Boss Lawyers.

I was referred to Boss Lawyers by another firm who cited Boss’ expertise in the area of law I required. I found Boss Lawyers rapidly understood my case and my needs, developed a winning strategy and delivered.

Professional and helpful I would have not hesitation in recommending Boss Lawyers to anyone requiring litigation work

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BRISBANE INSOLVENCY LAWYER FAQS

What are the early warning signs of corporate insolvency?

The early warning signs of corporate insolvency can include persistent cash flow problems, an inability to pay creditors or employees on time, reliance on extended credit terms, receiving legal notices such as statutory demands, declining sales or profitability, and an increasing reliance on short-term borrowing to meet day-to-day expenses. Other red flags include unpaid tax liabilities, creditor lawsuits, and difficulty securing new financing. If your business is experiencing any of these signs, it is essential to seek legal and financial advice immediately to explore possible solutions before the situation worsens.

What is the difference between voluntary administration and liquidation?

Voluntary administration is a temporary measure designed to provide a company with breathing space to explore restructuring options while under the control of an independent administrator. It can result in a company being saved through a Deed of Company Arrangement (DOCA), allowing the business to continue trading while satisfying creditors. Liquidation, on the other hand, is the final stage of winding down a company. A liquidator is appointed to sell the company’s assets, pay outstanding debts and ultimately dissolve the company. While voluntary administration offers a potential path to recovery, liquidation signifies the end of the business.

How does debt recovery relate to insolvency?

Debt recovery plays a crucial role in insolvency, as unpaid debts can push a company into financial distress. When businesses fail to recover outstanding payments from clients or customers, it affects cash flow and the ability to meet financial obligations. Legal options for debt recovery include sending demand letters, issuing statutory demands, engaging debt collection agencies, or initiating court proceedings.

If a company is already insolvent, liquidators will often pursue outstanding debts on behalf of creditors to maximise recoverable assets. Directors should seek legal guidance on the best strategies for debt recovery to avoid or mitigate insolvency risks.

Can directors be held personally liable for company debts?

Yes, company directors can be held personally liable for debts in several circumstances, including if they continue trading while insolvent, fail to meet tax obligations such as PAYG and superannuation, provide personal guarantees on loans, or engage in fraudulent or uncommercial transactions.

Directors may also face penalties and legal action if they intentionally transfer assets to avoid paying creditors. To avoid personal liability, directors should seek legal advice at the earliest signs of financial distress and take proactive steps to comply with corporate insolvency laws.

What should I do if I receive a statutory demand?

A statutory demand is a formal request from a creditor for payment of a debt exceeding $4,000. It must be responded to within 21 days. Failure to respond may result in the creditor applying to the court to wind up your company. If you receive a statutory demand, you have three options: pay the debt in full, negotiate with the creditor for a settlement, or apply to set aside the demand if you believe it is disputed or defective. Seeking legal assistance promptly can help you respond appropriately and avoid involuntary liquidation.

Can an insolvent company continue trading?

In general, it is illegal for a company to continue trading while insolvent, as doing so can result in significant penalties for directors, including personal liability for company debts. However, in some cases, directors may be able to continue operating if they appoint a voluntary administrator and explore restructuring solutions under legal supervision. If you suspect your company is insolvent, immediate professional advice is essential to determine your legal obligations and the best course of action.

How can I protect my personal assets if my company is insolvent?

There are several strategies to protect personal assets, including ensuring business and personal finances are kept separate, avoiding personal guarantees on company debts, properly structuring asset ownership (such as placing personal assets in a trust or with a spouse), and complying with legal requirements to minimise exposure to claims. Boss Lawyers are the insolvency practitioners Brisbane, Sunshine Coast and wider Queensland businesses rely on, we can assess your situation and recommend the best strategies to protect your financial position.

How can Boss Lawyers assist with my insolvency concerns?

Boss Lawyers provides comprehensive legal support for company directors dealing with insolvency issues. We are one of the most trusted insolvency firms Brisbane has to offer. Our insolvency attorneys supply expert guidance on voluntary administration, liquidation, creditor negotiations, and compliance with insolvency laws. Our goal is to help businesses explore all available options while protecting directors from personal liability.

Boss Lawyers also have extensive experience in all aspects of commercial law, including retail leasing, shareholder disputes, litigation and contract breaches. Contact us today to discuss how we can assist you.

Jason Titman

05:34 09 Apr 18

Working with a lawyer is not only about their understanding of the law but the ideal relationship requires your lawyer to also offer practical and pragmatic advice. Additionally, it is important for your lawyer to be contactable and to understand your risk profile with regards to the matter being dealt with. In my dealings with Mark and his team at Boss Lawyers, I have found all of the above to be true.

Karen Meissner

03:37 02 Apr 18

Mark Harley is exceptional at what he does - transforming complex law matters into easy to understand solutions.His knowledge, expertise and attention to detail are second to none. Here is a lawyer who cares and will go above and beyond for others.Without a doubt - Boss Lawyers do law differently - EXACTLY what the industry needs.I highly recommend Mark on both a professional and personal level.

Splatt Lawyers

02:30 29 Mar 18

Mark and the team provided exceptional advice and client service. They readily provided advice outside of office hours which we needed and really appreciated. Our matter was resolved on time and with the outcome we were looking for and accordingly we would not hesitate to use Mark and Boss Lawyers again and can highly recommend them.

Chris Baskerville

23:45 26 Mar 18

Mark Harley is a seasoned and highly skilled litigator. There is no better friend, nor worst enemy, than Mark Harley, who is willing to fight the good fight and not afraid to back down to opposition. He is a Trusted Adviser to me and my staff with a specific focus on Insolvency and Construction related matters. I trust him implicitly and have no hesitation in recommending him to others.

CHALLENGE COLLECTIONS

04:28 29 Mar 18

I have been engaging Boss Lawyers and Mark for over 3 years now, Boss are very Professional, Honest and reliable. They return calls and have my work done in a timely manner, I highly recommend Boss Lawyers, they are very dedicated Solicitors that go above and beyond.

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04:08 03 Dec 17

Excellent advice! Boss Lawyers have provide me with great advice on numerous occasions. From general contract advice to setting up my company to prevent any major legal problems. This allows me to run my Construction company with full confidence knowing I have Boss Lawyers to support me every step of the way. I highly recommend them.

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01:17 30 Jul 19

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00:35 11 Nov 19

I highly recommend Mark Harley from Boss Lawyers, he provided me with exceptional advice and a proposal for the best course of action which resulted in a positive outcome I didn't believe was possible. Mark is a skilled and accomplished litigator who cares for his clients and does the extra yards to ensure satisfactory outcomes.

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04:23 22 Nov 19

I was happy with the work Mark did for me. He was thorough, pragmatic and very commercial in his advice. He did not over complicate matters. He was also cost conscious and very responsive to my needs.