An insolvency lawyer is a legal professional with a focus on insolvency issues in the Corporations Act 2001 (CTH) and its rules and regulations, and the Bankruptcy Act 1966 (CTH) and its rules and regulations.
Usually dealing with an insolvency lawyer means that a client will have to talk about financially sensitive subjects. However, all discussions with insolvency lawyers are privileged, which means that your insolvency lawyer owes a duty of confidentiality to their client.
If you are the director of a company in financial distress, or a person with insurmountable personal debt, then contact our insolvency lawyers for an obligation free, confidential chat.
We act for creditors and debtors in all insolvency matters.
We also act for and against liquidators and bankruptcy trustees.
We can offer advice and assistance in the following areas of insolvency law:
- Bankruptcy, and personal insolvency;
- Issuing bankruptcy notices;
- Issuing statutory demands;
- Setting aside statutory demands;
- Breach of directors’ duties;
- Uncommercial transactions claims;
- Unfair preference claims;
- Voidable transactions;
- Deeds of company arrangement (“DOCA”);
- Winding up applications.
Give yourself the best chance of success, call and speak to an insolvency lawyer today.
Bankruptcy, and Personal Insolvency
Whether you are thinking about bankruptcy, or you are a creditor thinking about making a debtor bankrupt, we can give you advice and assistance.
We act for bankruptcy trustees giving advice and assistance in all matters related to bankruptcy.
We also act against bankruptcy trustees in matters such as voidable transaction claims for example.
Issuing Bankruptcy Notices
Upon obtaining a final judgment against a debtor, a creditor can enforce that judgment by issuing the judgment debtor with a bankruptcy notice.
A bankruptcy notice gives the judgment debtor 21 days to pay, enter into an agreement to pay, or apply to set the bankruptcy notice aside.
Failure to do any of these things means that the judgment debtor has committed an “act of bankruptcy” allowing the creditor to present a creditor’s petition in the Federal circuit Court.
We offer advice and assistance to both creditors and debtors – both applying for a bankruptcy notice and attempting to set them aside.
Issuing Statutory Demands
If an insolvent debtor company owes a debt of $2,000.00 or more then a creditor can issue that debtor company with a creditor’s statutory demand.
Failure by the debtor to pay, secure or compound, or apply to set the demand aside within 21 days will mean that the debtor company is presumed to be insolvent.
With this presumption of insolvency assisting the creditor can make a winding up application seeking an order winding up the debtor company in insolvency.
We act for creditors in all statutory demand related matters.
Setting Aside Statutory Demands
There are a number of reasons why a statutory demand should be set aside. They are:
- A genuine dispute between the company and the respondent about the existence or amount of a debt to which the demand relates.
- The debtor company an offsetting claim.
- There is a defect in the demand, and substantial injustice will be caused unless the demand is set aside.
- There is some other reason why the demand should be set aside.
We offer urgent advice and assistance to clients who have been served with a creditor’s statutory demand and want to apply to set the demand aside.
Insolvency Restructuring and Asset Protection
We work closely with insolvency accountants to assist clients restructure their business and personal financial affairs.
We can assist client to quarantine risk and protect their assets.
Breach of Directors’ Duties
If you breach your directors’ duties then there are some harsh penalties such as – the disqualification from being a director of company, financial penalties of up to $200,000, personal liability to pay company debts, and in the worst cases a director can go to prison.
It is very important that a director does not breach their duties. This also includes causing the company to trade while it is insolvent.
Insolvency Uncommercial Transactions Claims
A transaction of a company is an uncommercial transaction when:
- There is a transaction of a company; and
- There is a transaction with another party (or parties); and
- A reasonable person in the company’s circumstances would not have entered into the transaction having regard to;
- The benefits and detriments to the company and the other party (or parties).
There are ways to defeat a liquidator’s uncommercial transactions claim. We offer advice and assistance in all voidable transaction’s claims.
Unfair Preference Claims
An unfair preference occurs when:
- There is a transaction between the company and an unsecured creditor; and
- The transaction occurred while the company was insolvent; and
- The transaction results in the creditor receiving more than the creditor would receive from the company if the creditor were to prove for the debt in a winding up of the company.
If this happens, then a liquidator may be entitled to recover those funds from the creditor.
We offer urgent advice and assistance to creditors who have been sent an unfair preference letter from the liquidator.
We also work with liquidators to recover monies from creditors.
Voidable Transactions in Company Insolvency
As well as the two mentioned above, there are further voidable transactions in company insolvency which allows the liquidator to recover money from third parties, including:
- Insolvent transactions;
- Unfair loans to a company; and
- Unreasonable director-related transactions.
We offer advice and assistance to people given demand letters from the liquidator to attempt to defeat a liquidator’s claim to avoid money.
We also act for liquidators to recover voidable transactions from third parties.
Voidable Transactions in Bankruptcy
In the Bankruptcy Act, there are four (4) transactions which can be voided by the bankruptcy trustee, these are:
- Undervalued transactions;
- Transfers to defeat creditors;
- Transactions where consideration given to a third party;
- Transactions giving preference to one creditor over other creditors.
The trustee is able to void the transactions above and bring that money or property back into the estate of the bankrupt.
We act for creditors who have been given a demand from a bankruptcy trustee.
We also act for bankruptcy trustees to recover money and property back into the bankrupt’s estate.
Deeds of Company Arrangement (“DOCA”)
A deed of company arrangement, or (“DOCA”) is a binding agreement between a distressed company and its creditors.
A DOCA governs how the company’s affairs will be dealt with and aims to continue to trade with the goal of providing better returns for creditors than if it went into liquidation.
There are a number of advantages and risks when debtor clients are thinking about entering into a DOCA or creditor clients are thinking about voting for a DOCA.
We offer advice and assistance to debtors and creditors in relation to DOCA’s.
Winding up Applications
Non-compliance with a creditor’s statutory demand, and the raising of the presumption of insolvency, assists a creditor to obtain an order that the debtor company be wound up.
There are a number of steps which must be taken to successfully obtain a winding up order.
We can give advice and assistance in relation to all winding up application.
We act for creditors make winding up applications.
We also act for debtors attempting to defeat the winding up application.
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