1 / 3

Voluntary Administration Experts Insolvency Advice For Individuals And Companies

If your business is being liquidated, how do you handle the added stress of completing this liquidation process? It is not recommended that you handle all the financial problems yourself. To keep your life less complicated, you should hire a company that handles liquidation services. But how do you decide which one to choose

dcladvisory
Download Presentation

Voluntary Administration Experts Insolvency Advice For Individuals And Companies

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. Insolvency Insolvency Insolvency refers to an entity’s inability to pay its debts when they are due. The concept can relate to both businesses and individuals. The term “insolvency” is used mostly for a business. The options for an insolvent business include: The options for an insolvent business include: Liquidation: when the business "winds down" and closes. This can happen three ways: 1) via a creditor who seeks a court-ordered judgment (Court); 2) via the directors and/or shareholders. Proceeds go to the creditors (Creditors Voluntary); and, 3) via the directors and/or shareholders. Proceeds go to the shareholders (Members Voluntary). Voluntary Administration: when the directors of a financially troubled business or a secured creditor (a creditor who holds a security interest – mortgage, lien, etc.) holding a majority of the business’ debt appoints a voluntary administrator, who examines the business’ financial affairs and recommends how it should go on. The recommendation will either be: 1) enter into a Deed of Company Arrangement, a binding agreement between the business and the creditors that that commands how the businesses’ will operate; 2) return the business to the directors; or, 3) go into insolvency and liquidate the business. Receivership: when the court or a secured creditor appoints an independent receiver, who collects and sells the business’ assets in order to pay the secured creditor’s debts. The difference between receivership and other forms of insolvency administration is that Receivership does not disrupt the legal structure of the business. The company’s directors remain, yet their authority is limited to the receiver’s powers.

  2. Bankruptcy Bankruptcy “Bankruptcy” refers to an individual’s insolvency. When an individual or married couple are having financial problems, they may declare bankruptcy by lodging a Debtors Petition with the Australian Financial Security Authority. A Trustee in Bankruptcy then assumes control over a bankrupt debtor’s obligations and sells their assets, including household possessions, to raise funds to in order pay their creditors. With some exceptions, the bankrupt debtor no longer has to repay unsecured debts. There are some consequences. The debtor’s name is listed on a public insolvency register, cannot travel overseas, may forfeit the right to pursue legal actions, and may not be able to obtain credit. Creditors who are owed more than a certain amount of money can also ask the Federal Court to declare individuals bankrupt. The creditor must first ask the individuals to pay the debt in a particular time period. If they don’t pay the debt in the time period, they can then ask the court to deem the individuals bankrupt and under the control of a private trustee or the Official Trustee. DCL Advisory DCL Advisory DCL Advisory is a professional insolvency consulting firm based in Australia with over twenty years of service. Its team of registered liquidators certified practicing accountants and chartered accountants are extensively trained and experienced. They know how stressful it is to have financial difficulties. It's one of the most difficult experiences a business or individual can ever go through. Where a business is concerned, there are employees to consider. With individuals, there's a home and children. Seek Advice Seek Advice Any business or individual considering Business Insolvency Sydney or bankruptcy or even having financial issues should always seek the advice of a financial expert. Always, always, always.

  3. Act Proactively Act Proactively DCL Advisory believes individuals and businesses should always act proactively. Especially if a business or individual believes they may soon be unable to their secured creditors and/or taxes. Perhaps something can be done to cut back. Perhaps an individual could figure out a budget. If no solution can be found, then perhaps the business can file Voluntary R eceivership Sydney of Bankruptcy or individuals can file Bankruptcy on their own. Such is much better than having creditors do so for them. Peace Peace of Mind of Mind With just one phone call, DCL Advisory offers peace of mind. Once you speak to a DCL Advisory professional, you will know right away you have a skilled expert on your side and will be sure whatever decision you make will be the best one. DCL Advisory’s experts are the right people to call for all your financial matters, especially during times of financial distress. Come in and have a chat Come in and have a chat Address Head Office: Suite 6, 340 Darling Street Balmain NSW 2041 Or phone: 02 9810 7613 Mobile: 0420 896 000 Or email us: thomas@dcladvisory.com.au brad@dcladvisory.com.au anna@dcladvisory.com.au

More Related