Solutions for companies vary. It gets complicated very quickly. This page helps you understand what the technical names mean. Which option you take will depend on your specific situation. Call me or send me a question I will explain the specific options in more details and what is likely to apply to your situation. No obligation.
This is an efficient process employed when a company is insolvent or likely to become insolvent, i.e. a company which is unable to pay its debts when they fall due. Voluntary Administration allows for effective restructuring of a company to achieve a desirable outcome for the company, its creditors and employees.
The primary objective of a voluntary administration is to greatly increase the likelihood of the company or business continuing. Secondly, voluntary administration can be used to provide a company with greater flexibility, and aims to provide its creditors with a better return than would be achieved by an immediate cessation of business.
Creditors’ Voluntary Liquidation
This is the most effective means of ending the affairs of a company. The directors of a company start the liquidation process. This is followed by a meeting of members and then creditors. It is a quick an effective way of winding up a company’s affairs.
A Court Liquidation occurs when a company is insolvent and the company and/or a creditor makes an application to the Court for the winding-up of the company and the appointment of a liquidator. To provide evidence as to the company’s insolvency, the creditor must demonstrate the company’s inability to pay its debts as they fall due. Serving a statutory demand on the company is the most common way to achieve this. Once the time period for the statutory demand expires, the company is deemed to be insolvent and a creditor may file an application for the winding-up of the company.
A secured creditor or court may appoint a receiver, or receiver and manager to manage some or all of a company’s assets. Most commonly, a receiver is appointed by a lender or financier who has loaned funds to a company. Where a company is in default of its obligations a receiver may be appointed to sell assets to repay the secured creditor. This may include the sale of the company’s business.
Again solutions for individuals vary. This page helps you understand some of the bankruptcy terms. Again the option you take will depend on your situation. Call me or send me a question I will explain the specific options in more details and what is likely to apply to your situation. No obligation.
A Personal Insolvency Agreement (PIA) is where a person enters into an agreement with their creditors without being made bankrupt. Once the parties come to an agreement, the proposal is binding. A personal insolvency agreement enables a person and their creditors to come to a mutually agreed compromise in a relatively simple way without a Court.
A Part IX debt agreement is a legally binding agreement between a person and their creditors. A Part IX agreement involves a person proposing a deal with their creditors. The debt agreement proposal may be accepted or rejected by creditors. Debt Agreements are negotiated compromises. Some examples of the kinds of deals put in place are:
- Payment of less than the full amount of a persons debts.
- A moratorium on payment of debts.
- A transfer of property to one or more creditors in full or part payment.
- Periodic payments of amounts out of income to creditors.
If you are juggling repayments and debt, then help get your finances back under control. I have a number of options available to you which may include:
- Dealing with your creditors.
- Advice on how to manage and control your debts.
Bankruptcy is where declared unable to pay your debts. When you become bankrupt you will be released from most of the debts. It sounds appealing but comes with consequences. Once declared, you will be a bankrupt for 3 years and a trustee will manage your financial affairs.
Dealing with Bankruptcy can be very stressful and overwhelming. If you are considering bankruptcy let me help you.
What are your options
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Free call me on (02) 6214 6700 to discuss your specific situation. If you prefer send me an email with your questions and I will help you.
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