We get it. Every business faces challenges now and again, and we can help.

How? We’re a team of expert lawyers and business accountants offering professional business advice. And yes, we’ve seen it all before.

Some challenges are big, some are not. Some seem impossible, when they’re not. The fact is that whatever problem you’re facing, we have a solution.

From asset protection to finding good staff, from tax debt and legal advice to solving cash flow problems, we give you the advice you need.

Ginette Muller
Ginette Muller, Safe Harbour Practitioner, Pre-reconstruction Advisor

“All our members are experts in their field, so whatever challenge you’re facing, The Solvers have experienced business advisors to help you deal with it.”

James Flaherty
James Flaherty and Pre-reconstruction Advisor

“Running a business involves risk. Quite often that risk is high. It should not be taken without sufficient, substantial and ongoing reward.”

Your Questions Answered

Liquidation is the process of winding up a company’s business: selling its assets, investigating its affairs, recovering any legal claims, and distributing the funds received to creditors, and if there are funds left after costs, to shareholders.

A liquidator is registered with the Australian Securities & Investments Commission (ASIC) and they will be appointed to the company to carry out the liquidation process.

Six months for regular creditors. For related parties it can be up to 10 years.

Your name will appear permanently on a public register called the National Personal Insolvency Index. Other information that on the register usually includes your date of birth, residential address and occupation.
In addition, credit reporting agencies keep a record of your bankruptcy for 5 years from the date you became bankrupt or 2 years from when your bankruptcy ends, whichever is later.

A list of the credit reference agencies can be found on the www.moneysmart.gov.au website.

It’s a form of protection for consumers and business owners buying a large asset or extending credit. A search can be initiated at ppsr.gov.au  against the asset to find out if another entity or person, for example a lender has claim over it. This video about PPSR explains the process.

If you supply goods on credit, PPSR registration retains your interest in goods you are supplying. This means that should a customer go into liquidation before paying your invoice you are in the best position to get your goods, or their value, back. This video about PPSR explains the process.

Cost currently ranges between $2 and $7 depending on how the search is lodged. Here’s where you can find the full list of PPSR fees.

Who the security on an asset (a vehicle or a boat for example) belongs to, what the security is and when the security was acquired. This video about PPSR explains the process.

Unfortunately, it’s an unforgiving process, so you must take the time to get it right –  near enough is usually not good enough. In these circumstances it’s often worthwhile getting professional help.

There are a number of options. Do it yourself : go to your ATO portal and follow the prompts. Ask your Accountant: if you have a tax agent registered on your account with the ATO, they can apply for you; or contact one of our Solvers and we can assist you with a proposal including negotiations with the ATO.

Always get a loan document drawn up so that both lender and borrower know and agree the terms. Security for the loan should also be considered. A little bit of thought before the money is advanced could save a lot of pain and suffering later. Speak to one of our legal advisors.

A Priority Creditor is one that has a security on the item that’s  registered with the PPSR. It allows the creditor to sell the property to satisfy their debt.

Section 556 of the Corporations Act lists the order in which a liquidator must pay out money. Priority (or ​Secured) Creditors and employees have priority over unsecured creditors.

Secured Creditors are not impacted by Preference Claims. Tighten up your terms and conditions and register on the PPSR before you give credit or accept payment on terms. But beware – it’s vital your PPSR registration is absolutely accurate and correct. You must invest time in it, or alternatively engage a specialist. An incorrect registration is useless if defeated by the liquidator, because your entire investment is very likely to be lost.

  1. Follow a standard debt collection agreed with the customer.
  2. Keep written communication to a minimum.
  3. Enter instalment arrangements early.
  4. Don’t accept round figure payments from debtors – have specific invoice amounts paid.

But overall, don’t hesitate to pursue overdue debts.

Six months for regular creditors. For related parties it can be up to 10 years.

A voidable transaction is industry jargon for a number of recovery tools available to a liquidator under Part 5.7B of the Corporations Act. These tools are variations on a theme – they all aim to deal with payments made to creditors by an insolvent company that disadvantage other creditors. Recovery actions include: unfair preferences, uncommercial transactions, unfair loans and unreasonable director related transactions.

Consult a lawyer who specialises in the laws of insolvency who can develop a strategy for you. Make sure you agree a fixed fee for their time. You can then make informed decisions.

Take advice early – you will then know whether you should stand and fight, or fold.

Every situation is different – depending on what you are selling and who ultimately funds, and therefore owns, the underlying assets of the business venture. With a new business it is, on balance, probably best to start with a company and transition to a trust if your affairs get more complex in the future. This is very general – your specific circumstances may dictate a different answer so contact us for more particular advice.

Bruce Pasetti, Lawyer

“We know that trust is essential to any client-advisor relationship. Our goal is not only to satisfy your expectations, but to deliver beyond them.”

Any or all of these reasons for business owners with a Pty Ltd company who:

  • have closed or are likely to close their business without any money left 
  • cannot afford $15,000 but want to place their company into liquidation  
  • want to do the right thing and inform their creditors properly about the business closing down 
  • want to draw a line in the sand so they can get on with their future.

If you have personal assets you want to protect, like a family home or director’s guarantees, this may not be for you, but you should ask us.