- An insolvency lawyer in Brisbane advises directors, creditors and companies on obligations under the Corporations Act 2001 (Cth), including s 95A (solvency test), s 588G (insolvent trading), and s 459E (statutory demands).
- The 21-day window to respond to a statutory demand under s 459G cannot be extended by agreement, missing it creates a legal presumption of insolvency and opens the door to a winding up application.
- Queensland directors facing ATO Director Penalty Notices (DPNs), winding up threats, or cash flow pressure should seek legal advice immediately, not after the deadline passes.
- The best Brisbane insolvency lawyers combine insolvency expertise with litigation capability, because statutory demand disputes, DOCA challenges, and unfair preference defences all end up in court.
- Boss Lawyers, led by Mark Harley with 17 years of commercial and insolvency experience, acts for both directors and creditors at Brisbane CBD, Brisbane, call 1300 267 711.
An insolvency lawyer in Brisbane advises directors, creditors and companies on their legal obligations and options when a company cannot pay its debts. Whether you are a director confronting a statutory demand, a creditor trying to recover what you are owed from an insolvent company, or a business owner weighing restructuring against an orderly wind-down, an insolvency lawyer translates the law into a practical plan of action.
This guide covers what Brisbane insolvency lawyers actually do, when to make that call, what to look for when choosing one, and how the key insolvency processes work in Queensland. If you are under pressure right now, call Boss Lawyers on 1300 267 711 for urgent advice.
What Does an Insolvency Lawyer Actually Do?
The term “insolvency lawyer” is often misunderstood. An insolvency lawyer is not a liquidator, they do not administer the wind-up of a company. They are a solicitor who provides legal advice and representation to the parties caught up in or attempting to avoid an insolvency event. Their work is intensely practical and often time-critical.
Here is what Brisbane insolvency lawyers do in practice:
Advising Directors on Their Legal Duties
Under s 588G of the Corporations Act 2001 (Cth), a director commits insolvent trading if the company incurs a debt when the director knew or ought to have known the company was insolvent. The consequences are serious: personal civil liability and, in cases of dishonesty, criminal liability. An insolvency lawyer advises directors on whether the company has crossed the solvency threshold under s 95A (the cash flow test), what obligations that triggers, and whether any defences apply, including the safe harbour under s 588GA, which protects directors who take a genuine restructuring course of action.
Voluntary Administration
Voluntary administration (VA) is a process under Part 5.3A of the Corporations Act that puts an independent administrator in control of an insolvent company while creditors decide the company’s future. It provides a short-term moratorium against creditor action, including enforcement of security and execution of judgments. An insolvency lawyer advises directors whether VA is appropriate, what personal exposure it does and does not extinguish, and how to engage constructively with the administrator’s process. They also represent creditors in the voluntary administration, including at creditors’ meetings where key votes, including on a Deed of Company Arrangement (DOCA), take place.
Deeds of Company Arrangement
A Deed of Company Arrangement (DOCA) is a formal agreement under s 444A of the Corporations Act between an insolvent company and its creditors that allows the company to continue trading under defined conditions while paying creditors according to an agreed schedule. DOCAs are voted on by creditors at the second creditors’ meeting. An insolvency lawyer advises both company directors seeking to propose a DOCA and creditors evaluating whether to vote in favour or apply to have it terminated under s 445D.
Liquidations
When a company is wound up, whether by creditors’ resolution (Creditors Voluntary Liquidation under s 497) or by court order (Court Liquidation), directors and creditors both need legal advice. Directors may face demands from liquidators for unfair preference payments, insolvent trading recoveries, or production of company books and records. Creditors need advice on filing proofs of debt, challenging the liquidator’s decisions, and pursuing voidable transaction defences. An insolvency lawyer navigates this process on your behalf.
Statutory Demands
A statutory demand under s 459E of the Corporations Act is one of the most powerful debt recovery tools available to a creditor. It demands payment of a debt of $4,000 or more within 21 days. If the company does not pay or apply to set the demand aside within that window, it is presumed insolvent. A Brisbane insolvency lawyer acts for both sides: drafting and serving demands for creditors, and applying to set aside defective demands for companies. The 21-day clock under s 459G starts the moment the demand is served, there is no grace period and no extension by consent.
Director Duties and Personal Liability Advice
Directors of Queensland companies often do not realise the extent of their personal exposure in insolvency. Beyond insolvent trading under s 588G, directors may face personal liability under ATO Director Penalty Notices (DPNs) for unpaid PAYG withholding and superannuation guarantee charges. An insolvency lawyer identifies these exposure points, advises on defences and mitigation strategies, and represents directors in disputes with the ATO, liquidators, and creditors.
Safe Harbour Advice
The safe harbour defence under s 588GA of the Corporations Act protects directors from insolvent trading liability if they are developing a restructuring course of action that is reasonably likely to lead to a better outcome for the company than immediate administration or liquidation. The defence is only available if the director is taking genuine, documented steps, which requires legal advice from the outset. An insolvency lawyer helps directors structure and document a safe harbour strategy.
When Should You Call an Insolvency Lawyer?
The single biggest mistake directors and creditors make is waiting too long. By the time a company enters formal insolvency, many of the options that would have been available three or six months earlier have closed. Here are the six scenarios where you need an insolvency lawyer, now, not next week.
1. The Company Cannot Pay Its Debts on Time
Under s 95A of the Corporations Act, a company is insolvent if it cannot pay all its debts as and when they become due and payable. This is the cash flow test. You do not need to be balance-sheet insolvent, if trade creditors are being paid late, if you are stretching supplier terms beyond what was agreed, or if you are using the credit card to cover payroll, the company may already be legally insolvent. At that point, every debt the company incurs while insolvent is a potential personal liability for each director. Call a lawyer before the next payment is missed, not after.
2. You Have Received a Statutory Demand
If your company has received a statutory demand under s 459E, you have 21 days to act. That is 21 calendar days from the date the demand was served, not from the date you open it. If the debt is genuinely disputed, you may apply to a court to set aside the demand under s 459G. If the demand is valid, you may need to negotiate payment, or consider whether administration or restructuring is the right path. Miss the 21-day window and your options narrow dramatically. Instruct an insolvency lawyer the same day you receive the demand.
3. The ATO Has Issued a Director Penalty Notice
A Director Penalty Notice (DPN) from the ATO is a formal notice that holds a director personally liable for the company’s unpaid PAYG withholding, net GST, and superannuation guarantee charge obligations. There are two types of DPN, a “lockdown” DPN (where the director cannot escape liability by putting the company into administration) and a “non-lockdown” DPN (where placing the company into voluntary administration or liquidation within 21 days of the notice can avoid personal liability). Knowing which type you have received determines your entire strategy. Call an insolvency lawyer immediately, the 21-day window applies here too.
4. A Creditor Is Threatening to Wind Up the Company
A creditor with an unpaid statutory demand (or a court judgment) can apply to wind up your company. The filing of a winding up application triggers a public notice on ASIC’s register that can be catastrophic for supplier relationships, customer confidence, and banking covenants. An insolvency lawyer can advise on whether the winding up application can be opposed, whether a compromise can be reached, or whether a formal restructuring process is the better path to protect the company’s business and the directors’ positions.
5. The Company Is Facing an ATO Debt or Payment Plan Dispute
The ATO has significantly escalated its enforcement posture in recent years, issuing more DPNs, pursuing winding up applications earlier, and reducing its willingness to accept informal payment arrangements. If your company has ATO debt, particularly overdue superannuation guarantee charges, which carry the most severe DPN consequences, you need legal advice on how to engage with the ATO in a way that protects directors’ personal positions. An insolvency lawyer who understands the ATO’s enforcement framework can make a material difference to the outcome.
6. You Are Concerned About Director Liability Exposure
Not every insolvency problem arrives with a formal demand. Sometimes a director reads about insolvent trading, looks at the company’s financial position, and realises they may already have crossed a legal threshold. Or they receive a call from the company’s accountant expressing concern about the financial statements. At that point, a confidential consultation with an insolvency lawyer gives you a clear picture of your exposure and your options, before the situation becomes a formal dispute. Taking advice early is always the right move.
What to Look for in a Brisbane Insolvency Lawyer
Not all commercial lawyers handle insolvency work. And not all insolvency lawyers are equally equipped to deal with the full range of insolvency disputes, particularly when a matter escalates into contested litigation. Here are five criteria to apply when choosing a Brisbane insolvency lawyer.
1. Queensland Court Experience
Insolvency law in Queensland is administered through the Federal Court of Australia (sitting in Brisbane) and the Supreme Court of Queensland. Statutory demand set-aside applications, winding up proceedings, and voidable transaction recovery actions all require comfort in those forums. Your insolvency lawyer should be actively practising in the Federal and Supreme courts, not merely familiar with the legislation. Ask about recent court work specifically in Queensland insolvency matters.
Boss Lawyers acts in Federal and Supreme Court proceedings in Queensland. Mark Harley’s practice includes statutory demand disputes, winding up applications, and insolvency-related commercial litigation in Queensland courts.
2. Insolvency and Litigation Combined
One of the most common structural weaknesses in insolvency legal advice is the separation between an insolvency team and a litigation team. Insolvency matters are almost always contentious. A statutory demand set-aside becomes an interlocutory application. A DOCA dispute becomes a s 445D court application. A director liability claim becomes defended proceedings. If your insolvency lawyer has to refer the contentious part to a different team or firm, you lose continuity, you pay twice, and critical strategy decisions fall between the cracks.
Boss Lawyers is a boutique commercial litigation and insolvency firm. There is no referral to a litigation team, Mark Harley and the Boss Lawyers team handle the insolvency advice and the litigation that flows from it as a single, continuous engagement.
3. Responsive, Particularly on the 21-Day Statutory Demand Window
Insolvency law is full of hard deadlines. The 21-day window under s 459G to set aside a statutory demand. The 21-day window to respond to a Director Penalty Notice. The 20 business day window for an administrator to call the first creditors’ meeting under s 439A. Missing any of these does not create a difficult situation, it closes off an entire category of legal options. Your insolvency lawyer must be reachable quickly, must understand urgency, and must be able to mobilise immediately.
Boss Lawyers provides direct access to the lawyer handling your matter, not a switchboard that routes calls to a paralegal. Call 1300 267 711 and you will speak to someone who can act on your matter the same day.
4. Fixed Fee Clarity
Cost uncertainty is one of the primary reasons directors and creditors delay getting legal advice, often until it is too late. A Brisbane insolvency lawyer who offers fixed fee pricing for defined work (such as a statutory demand response or a director advisory session) removes the main barrier to early engagement. The cost of early advice is almost always far lower than the cost of the problem that develops when advice is delayed.
Boss Lawyers offers fixed fee services for statutory demand work and director advisory sessions. Contact us on 1300 267 711 to confirm current pricing before your matter begins.
5. Track Record in Commercial and Insolvency Work
Look for a firm that handles commercial disputes and insolvency work together, because the skills are transferable and the matters overlap constantly. A director defending an insolvent trading claim needs a lawyer who can run a contested Federal Court trial if necessary. A creditor pursuing recovery through a liquidation needs a lawyer who understands both the proof of debt process and the litigation options if the liquidator’s distribution is disputed.
Mark Harley has practised commercial litigation and insolvency law for 17 years. Boss Lawyers acts for directors, creditors, and companies at the serious end of the commercial insolvency spectrum, not volume commodity work. See our insolvency legal services for an overview of how we can assist.
The Insolvency Process in Queensland: An Overview
Understanding the insolvency process helps directors and creditors make informed decisions when time is limited. Here is a plain-English map of the key pathways under Queensland and federal law.
Voluntary Administration (VA)
A director of an insolvent company (or a creditor with an unpaid debt) can appoint an administrator under s 436A of the Corporations Act. The administrator takes control of the company and its business, investigates its financial affairs, and reports to creditors. Within 20 business days of appointment, the administrator must convene the second creditors’ meeting where creditors vote on the company’s future. The three outcomes available are: a Deed of Company Arrangement (DOCA), return of control to the directors, or liquidation. Voluntary administration provides a short moratorium against most creditor enforcement action while the restructuring options are evaluated.
For a detailed guide to voluntary administration in Queensland, see our post on what happens to creditors and directors in voluntary administration.
Deed of Company Arrangement (DOCA)
A DOCA is a formal agreement under s 444A of the Corporations Act between the company and its creditors, voted on at the second creditors’ meeting by a majority in both number and value of creditors. A DOCA typically involves the company paying creditors an agreed sum (often more than they would receive in liquidation) in exchange for the company being released from its debts and returning to normal operation. DOCAs can be challenged by dissenting creditors under s 445D if the arrangement is unfair or was procured by fraud. For a full explanation, see our post on what is a deed of company arrangement.
Creditors Voluntary Liquidation (CVL)
When a company’s financial position is beyond recovery, a CVL under s 497 of the Corporations Act allows the directors and shareholders to resolve to wind up the company and appoint a liquidator. The liquidator’s role is to collect and realise the company’s assets, investigate director conduct (including potential insolvent trading claims under s 588G), adjudicate creditor claims, and distribute available assets to creditors in the statutory priority order. Directors who cooperate fully with the liquidator’s investigation generally avoid the most serious personal exposure.
Small Business Restructuring (SBR)
The Small Business Restructuring (SBR) process, introduced under Part 5.3B of the Corporations Act, is available to companies with total liabilities of less than $1 million. It is a simplified restructuring pathway that allows directors to remain in control of the company while a restructuring practitioner develops a plan to pay creditors. The SBR process is faster and less costly than voluntary administration and is specifically designed for small and medium-sized businesses in Queensland. Legal advice at the entry point is critical, the SBR eligibility criteria and the consequences of a failed plan are both highly consequential.
Boss Lawyers: Brisbane Insolvency Lawyers
Boss Lawyers is a boutique commercial litigation and insolvency law firm based in Brisbane. We act for directors, creditors, and companies in the full range of insolvency and restructuring matters, from urgent statutory demand advice through to contested Federal Court proceedings.
Our principal, Mark Harley, has practised commercial and insolvency law for 17 years. Boss Lawyers is deliberately structured as a boutique firm, which means clients deal directly with the lawyer handling their matter from the first phone call to the resolution of their case. There is no junior team running the file while a partner’s name sits on the letterhead. When you call Boss Lawyers, you get direct access to experienced commercial insolvency advice.
We act for both directors and creditors in insolvency matters, which means we understand the full picture. When we advise a director, we know exactly how a liquidator or creditor lawyer will approach the same situation. When we act for a creditor, we know the arguments a director will run in response. That dual perspective informs sharper, more commercial advice.
Our insolvency work includes:
- Statutory demand drafting, service, and set-aside applications
- Director advice on insolvent trading exposure and safe harbour strategies
- Voluntary administration and DOCA advice for directors and creditors
- Winding up applications and opposition to winding up
- ATO Director Penalty Notice response and negotiation
- Unfair preference recovery and defence
- Creditor representation in liquidations (proofs of debt, public examinations, voidable transactions)
- Small Business Restructuring (SBR) advice and plan preparation
Boss Lawyers is located at Brisbane CBD, 32 Turbot Street, Brisbane QLD 4000. We act for clients throughout Queensland.
If you are a director or creditor dealing with an insolvency matter, whether it is urgent or in the early stages, call us on 1300 267 711 or contact us through our insolvency legal services page. We will tell you quickly what your options are and what the risks look like from where you stand.
Boss Lawyers also acts in director disputes that arise during or following insolvency events, including disputes over director duties, responsibility for company debts, and internal disagreements between co-directors navigating a restructure. For immediate guidance on a statutory demand, see our detailed guide: what happens if you ignore a statutory demand in Queensland.
Frequently Asked Questions
What does an insolvency lawyer in Brisbane do?
An insolvency lawyer in Brisbane advises directors, creditors and companies on their legal rights and obligations when a company cannot pay its debts. This includes advising on voluntary administration, liquidation, deeds of company arrangement (DOCAs), statutory demands, director duties under s 588G of the Corporations Act 2001 (Cth), safe harbour protections, and creditor claims. They also represent clients in court proceedings including winding up applications and unfair preference recovery actions.
When should a director call an insolvency lawyer?
A director should call an insolvency lawyer as soon as they suspect the company cannot pay its debts as and when they fall due (the cash flow test under s 95A of the Corporations Act 2001 (Cth)). Other key triggers include receiving a statutory demand (which carries a 21-day response window under s 459G), receiving a Director Penalty Notice from the ATO, facing a winding up application, or being concerned about personal exposure for insolvent trading under s 588G. Early advice significantly expands the options available.
How long does a director have to respond to a statutory demand?
A company that receives a statutory demand has 21 days to either pay the debt or apply to a court to have the demand set aside under s 459G of the Corporations Act 2001 (Cth). This deadline cannot be extended by agreement between the parties. If the company does neither within 21 days, the creditor may proceed to file a winding up application, and the company is presumed insolvent under s 459C(2)(a). Instructing an insolvency lawyer immediately upon receipt is essential.
What is the difference between a liquidator and an insolvency lawyer?
A liquidator is a licensed insolvency practitioner (appointed under the Corporations Act 2001 (Cth)) who administers the winding up of a company, collects and distributes assets, and investigates director conduct. An insolvency lawyer is a solicitor who provides legal advice to directors, creditors, or other stakeholders about their rights and obligations in an insolvency situation. Insolvency lawyers may also represent clients in court proceedings against or brought by liquidators. You need both professionals in a serious insolvency matter, and they serve different roles.
Can insolvency lawyers help creditors, not just directors?
Yes. Insolvency lawyers regularly act for creditors in recovering debts from insolvent companies, including filing proofs of debt in liquidations, challenging deeds of company arrangement (DOCAs) under s 445D, opposing winding up applications or supporting them, and pursuing unfair preference recovery defences. Secured creditors, trade creditors, landlords, and employee claimants can all benefit from experienced insolvency legal advice when a company they deal with enters administration or liquidation.
This is general information only and is not legal advice. You should obtain professional advice specific to your circumstances. The law described above is based on the Corporations Act 2001 (Cth) as in force in Queensland. Director duties and insolvency obligations are fact-specific, contact Boss Lawyers on 1300 267 711 for advice tailored to your situation.
