For directors facing disputes, governance challenges, or questions about personal liability, our director dispute lawyers Brisbane at Boss Lawyers offer strategic advice backed by 17+ years of complex commercial experience. Call Mark Harley on 1300 267 711.
When your business is under serious financial pressure — cash flow has dried up, creditors are demanding payment, and you are not sure how you are going to meet next week’s payroll — the decisions you make in the next days and weeks can define your financial future. The right insolvency lawyer in Brisbane can mean the difference between a structured, strategic response and a chaotic collapse that exposes you to personal liability.
This guide explains what insolvency lawyers do, when you need one, how to choose the right firm, and how Mark Harley and the team at Boss Lawyers approach insolvency and restructuring matters for businesses and directors across Queensland.
When Do You Need an Insolvency Lawyer?
Many business owners wait too long before seeking legal advice on insolvency issues. By the time a creditor has served a statutory demand or a winding-up application has been filed, your options have already narrowed significantly.
You should speak to an insolvency lawyer if:
- Your business cannot pay its debts as and when they fall due
- You have received a statutory demand from a creditor (you have only 21 days to respond)
- A creditor is threatening to commence winding-up proceedings
- A liquidator, receiver, or administrator has been appointed to a company that owes you money
- You are a director who is concerned about potential insolvent trading liability
- Your business is viable but needs to restructure its debts or operations
- You are considering voluntary administration, a deed of company arrangement (DOCA), or a small business restructuring plan
- A bank or secured creditor is threatening to enforce its security
- You are owed money by a company that has gone into administration or liquidation
Time matters in insolvency. The sooner you seek advice, the more options are available to you — and the lower your legal exposure as a director.
What an Insolvency Lawyer Actually Does
The work of an insolvency lawyer is often misunderstood. It is not simply about winding up failing businesses. Experienced insolvency lawyers in Brisbane do far more:
Advising Directors on Their Legal Position
When a company is insolvent or approaching insolvency, directors face significant legal exposure. Under section 588G of the Corporations Act 2001 (Cth), a director may be personally liable for debts incurred while the company is insolvent if they knew (or ought to have known) the company was insolvent at the time. An insolvency lawyer can assess your exposure and advise on defences — including the safe harbour provisions under section 588GA.
Statutory Demand Defence and Response
A statutory demand is one of the most time-critical documents in commercial law. If your company receives a statutory demand and fails to comply or apply to set it aside within 21 days, the company is presumed insolvent — and a winding-up application can follow. Grounds to set aside a statutory demand include a genuine dispute about the debt, an offsetting claim, or a defect in the demand itself. An experienced lawyer can assess your grounds quickly and file the application in the right court.
Defending Winding-Up Applications
If a winding-up application has been filed against your company, an insolvency lawyer can assess whether the application can be opposed, whether the debt is genuinely disputed, and whether an adjournment can be obtained to allow a restructuring to proceed.
Voluntary Administration and DOCA
Voluntary administration places a company in the hands of an independent administrator, who investigates its affairs and presents creditors with options — including a deed of company arrangement that may allow the business to continue. An insolvency lawyer can advise directors on whether administration is appropriate, assist in selecting an administrator, and help negotiate and document a DOCA.
Small Business Restructuring
The Corporations Act small business restructuring regime (Part 5.3B) allows eligible companies with liabilities under $1 million to restructure their debts under the supervision of a small business restructuring practitioner. The director remains in control of the business during the restructuring. This can be a powerful alternative to administration for smaller businesses.
Creditor-Side Insolvency
If you are owed money by a company that has become insolvent, an insolvency lawyer can advise you on lodging a proof of debt, challenging an unfair preference claim, pursuing a related party, or conducting an examination of the company’s former directors and officers under Part 5.9 of the Corporations Act.
Unfair Preference Recovery Defence
Liquidators regularly pursue creditors who received payment from an insolvent company within six months before the liquidation commenced (or two years for related parties). These are called unfair preference claims. If you have received a demand from a liquidator, a lawyer can assess whether you have a defence — including the good faith defence under section 588FG(2).
The Difference Between Acting for Directors and Acting for Creditors
Insolvency law is adversarial by nature. The same set of facts can look very different depending on whether you are the director of an insolvent company, an unsecured creditor trying to recover a debt, or a secured creditor enforcing its charge. It is critical to engage a lawyer who understands which side of the table you are on — and who has the experience to act aggressively for your interests.
Director-side insolvency work focuses on minimising personal liability, preserving viable parts of the business, and achieving the best outcome for the company and its stakeholders. This requires a deep understanding of insolvent trading law, safe harbour, voluntary administration, and restructuring options.
Creditor-side insolvency work focuses on maximising recovery — through statutory demands, winding-up applications, proof of debt, voting on DOCAs, and pursuing voidable transactions. Speed and aggression matter. A slow creditor often recovers less.
Boss Lawyers regularly acts for both directors and creditors in insolvency matters. We are clear about the conflict rules and only act for parties on the same side of a matter.
What to Look for in an Insolvency Lawyer in Brisbane
Choosing the right insolvency lawyer is one of the most important decisions you will make when your business is in trouble. Here is what matters:
Experience in Queensland Courts
Insolvency applications in Queensland are typically heard in the Supreme Court of Queensland or the Federal Court of Australia. You need a lawyer who is experienced in those courts, knows the judges and registrars, and can navigate the procedural requirements efficiently. This is not the time to be a test case for a junior solicitor.
Direct Access to a Senior Lawyer
In insolvency matters, speed and quality of advice are critical. You should have direct access to the lawyer handling your matter — not a rotating cast of assistants. At Boss Lawyers, clients have direct access to Mark Harley, our Principal Solicitor, who has over 17 years of experience in commercial litigation and insolvency law and has acted in more than 3,000 commercial matters.
Commercial Judgment, Not Just Legal Knowledge
The best insolvency advice is not purely legal — it is commercial. The right lawyer understands your business, understands the commercial dynamics of the dispute, and gives you advice that balances legal risk with commercial reality. We regularly advise on questions like: is it worth fighting this statutory demand? What is the liquidator actually likely to pursue? Should we trade on through administration or wind up?
Full-Service Commercial Capability
Insolvency matters often intersect with commercial litigation, director disputes, contract disputes, and corporate governance issues. A firm with broad commercial capabilities can handle the full picture — rather than handing off pieces of your matter to other firms.
Queensland Focus
Insolvency law in Queensland has its own procedural quirks and judicial preferences. Local expertise matters.
Red Flags in Insolvency Advice
Not all insolvency advice is equal. Watch out for:
- Advisers who promise they can make debts disappear — reputable insolvency practitioners deal with realities, not fantasies.
- Upfront fees for “solutions” without proper advice — understand what you are getting before you pay.
- “Phoenix” arrangements without proper legal advice — phoenixing (transferring business to a new entity to defeat creditors) can expose directors to serious criminal and civil liability. Do not do it without experienced legal advice.
- Advisers who take a one-size-fits-all approach — every insolvency situation is different. Cookie-cutter advice is dangerous.
- Pressure to appoint a particular administrator or liquidator — the choice of insolvency practitioner matters and should be made independently.
How Boss Lawyers Approaches Insolvency Matters
Mark Harley, Principal Solicitor of Boss Lawyers, has over 17 years of experience in commercial litigation and insolvency law. Based at Level 27, Santos Place, 32 Turbot Street, Brisbane QLD 4000, Boss Lawyers is a boutique commercial firm that acts in the serious end of insolvency and restructuring work — complex director liability matters, contested winding-up proceedings, major creditor recoveries, and multimillion-dollar restructuring transactions.
We are not a volume shop. We take on matters where our experience adds real value — where the stakes are high enough to justify senior, direct-access representation. Our approach is:
- Move fast. Time is always the enemy in insolvency. We provide rapid initial advice and act immediately on time-critical matters.
- Assess the full picture. Before advising, we understand the company’s financial position, the nature of the debts, the director’s exposure, and the available options.
- Be commercial. We give frank advice about the real costs and benefits of litigation versus commercial resolution. We do not run matters that do not make commercial sense.
- Protect directors. Where a director’s personal liability is at risk, we prioritise getting them safe harbour protection or a defensible restructuring plan in place as early as possible.
- Fight hard for creditors. When we act for creditors, we pursue recovery aggressively and efficiently.
Common Insolvency Scenarios We Handle
Defending Statutory Demands
A creditor has issued a statutory demand for a disputed debt. We assess the grounds to set it aside — genuine dispute, offsetting claim, or technical defect — and file promptly in the Supreme Court of Queensland or Federal Court. Time is critical: the 21-day limit is strict.
Voluntary Administration for a Viable Business
A business is viable but has unsustainable debt. We advise directors on whether to appoint an administrator, assist in selecting an independent administrator, and participate in the creditors’ meetings and DOCA negotiations.
Safe Harbour for Directors
A company is under financial pressure but the directors believe the business can be restructured. We advise on the requirements for safe harbour protection under section 588GA — what constitutes a “better outcome” plan and how to document the director’s decision-making to protect against future insolvent trading claims.
Liquidation Defence — Unfair Preferences
A liquidator has written to a creditor seeking repayment of payments made in the six months before liquidation. We assess the merits of the unfair preference claim and advise on the good faith defence, including whether the creditor had reasonable grounds to suspect insolvency.
Winding Up for Debt
A creditor is owed a debt by a company that will not pay. We advise on the statutory demand process, the winding-up application in the Federal Court, and the recovery of costs from the liquidation estate.
Creditor Representation in Administration
A major creditor is owed a significant sum by a company in administration. We advise on the proof of debt process, participation in the committee of inspection, voting on the DOCA, and options to challenge the administrator’s decision or remuneration.
Director Disqualification Defence
ASIC or a liquidator is seeking to have a director disqualified from managing corporations following a company failure. We defend the director’s position in ASIC proceedings or Federal Court applications.
Frequently Asked Questions
What is the difference between voluntary administration and liquidation?
Voluntary administration is a process designed to give a struggling business a chance to restructure and continue, or to achieve a better outcome for creditors than immediate liquidation. An administrator investigates the company’s affairs and presents creditors with options — including a DOCA. Liquidation is the end of the road: the company’s assets are realised and distributed to creditors, and the company is deregistered.
Can directors be personally liable for company debts?
Yes. Under section 588G of the Corporations Act, directors can be personally liable for debts incurred by the company while it was insolvent if they knew (or ought to have known) of the insolvency. Directors of failed companies can also face liability for unpaid employee entitlements under the director penalty notice regime. Taking early legal advice is the best way to understand and manage your exposure.
What is safe harbour and how do I access it?
The safe harbour provisions (section 588GA of the Corporations Act) protect directors from insolvent trading liability if, at the time the relevant debts were incurred, they were developing or taking a course of action that was reasonably likely to lead to a better outcome for the company than immediate administration or liquidation. Accessing safe harbour requires proper documentation and a genuine restructuring plan. We advise directors on how to establish and maintain safe harbour protection.
I have received an unfair preference claim from a liquidator. What should I do?
Do not ignore it. Engage a lawyer to assess the merits of the claim — including whether you have a good faith defence. The good faith defence under section 588FG(2) is available where the creditor received the payment in good faith, had no reasonable grounds to suspect the company was insolvent, and provided value in connection with the payment. Time limits apply to the liquidator’s right to bring these claims.
How much does it cost to hire an insolvency lawyer in Brisbane?
Costs vary significantly depending on the complexity of the matter and the level of court involvement. Simple statutory demand advice or a compliance review may involve a few hours of a lawyer’s time. Contested winding-up proceedings or complex restructuring transactions are substantially more involved. We provide clear, upfront advice on costs at the outset and will always tell you if we think a matter does not make commercial sense to pursue.
Talk to Brisbane’s Insolvency Lawyers at Boss Lawyers
If your business is under financial pressure — or if you are a creditor trying to recover a debt from an insolvent company — Boss Lawyers can provide the clear, strategic advice you need.
Call Mark Harley and the Boss Lawyers team on 1300 267 711 or visit bosslawyers.com.au. We are based at Level 27, Santos Place, 32 Turbot Street, Brisbane QLD 4000.
Our related practice areas include insolvency and restructuring, insolvent trading and director liability, and safe harbour for directors.
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This is general information only and is not legal advice. You should obtain professional advice specific to your circumstances.
