Our team of skilled litigators offer professional guidance on personal and commercial insolvency and bankruptcy matters to clients in Queensland. No detail is left out in our expert advice.
Helping You Navigate Financial Challenges
Personal & Corporate Insolvency
Protecting Your Interests and Preserving Your Assets
We understand that the process of insolvency is a difficult and complex one. That’s why our insolvency practitioners provide clients with a comprehensive assessment of their individual or business situation to determine the best course of action.
Our experienced lawyers work closely with clients to ensure that all options are explored and that the most appropriate solution is identified. We also provide advice on restructuring, asset protection and debt management. We strive to ensure that our clients receive the best possible outcome from thier insolvency or bankruptcy proceedings.
How We Can Support You
We Act For Creditor & Debtors In All Insolvency Matters
Our team of experienced lawyers will guide you through the process of insolvency with the utmost care and attention to ensure that all legal requirements are met. We understand that every situation is unique and we tailor our advice to meet your individual needs. We are committed to providing our clients with a comprehensive service that takes into account their individual circumstances. We provide clear and concise advice on the options available and aim to ensure a positive outcome for our clients in any insolvency matter.
We Act For & Against Liquidators and Bankruptcy Trustees
Our team of experienced insolvency lawyers can provide advice on all aspects of liquidation, bankruptcy and restructuring. We understand the intricacies of insolvency law and are committed to providing our clients with the best possible outcome in any matter. We take the time to understand our clients’ individual circumstances and provide tailored advice that is tailored to their needs.
We Can Provide Advice & Assistance In Insolvency Law
Our expertise lies in providing guidance and support in the various aspects of insolvency law including, but not limited to, bankruptcy and personal insolvency, issuance of bankruptcy notices and statutory demands, setting aside statutory demands, breach of directors’ responsibilities, uncommercial transactions claims, unfair preference claims, voidable transactions, deeds of company arrangement (DOCA), and winding up applications. As professionals, we ensure that no information is left out while offering our services.
Strategic Solutions for Individuals & Businesses
We provide strategic solutions for individuals and businesses facing financial distress. We understand that each situation is unique and we strive to identify the best solution for our clients.
No Obligation Case Evaluation
After obtaining a final judgment against a debtor, a creditor can enforce it by issuing a bankruptcy notice to the debtor. The notice provides the debtor with three options: pay the debt, agree to pay it, or apply to set aside the notice within 21 days. If the debtor fails to take any of these actions, they will be considered to have committed an "act of bankruptcy." As a result, the creditor can present a petition to the Federal Circuit Court. We provide professional guidance to both creditors and debtors on how to apply for or challenge a bankruptcy notice.
When a debtor company that is not able to pay its debts owes $2,000.00 or more, a creditor can send them a creditor's statutory demand. If the debtor company fails to pay or make a deal within 21 days, it will be considered insolvent. This presumption of insolvency can be used by the creditor to apply for a winding-up order to liquidate the debtor company. As experts in statutory demand-related matters, we represent creditors in such cases.
In order to set aside a statutory demand, several factors may come into play. These include a legitimate disagreement between the company and the respondent regarding the debt in question, the debtor company has an offsetting claim, a defect in the demand that would cause significant unfairness if not addressed, or any other valid reason. Our professional services provide prompt guidance and support to clients who have received a creditor's statutory demand and require assistance in applying to have it set aside.
We collaborate closely with insolvency accountants to aid clients in restructuring their business and personal financial matters. Our services help clients isolate potential risks and safeguard their assets. Our approach is professional and tailored to meet the unique needs of each client.
When a director fails to fulfil their duties, severe consequences may follow, ranging from a prohibition to hold directorial positions in any company, to substantial monetary fines reaching $200,000, personal responsibility to repay the debts of the company, and in extreme cases, even imprisonment. Directors must avoid breaching their duties, which encompasses not engaging in insolvent trading practices.
According to the definition, a transaction of a company is categorised as uncommercial when the company engages in a transaction with another party but a reasonable person in the company's situation would not have agreed to the transaction considering the advantages and disadvantages to both parties. To counter a liquidator's claim of uncommercial transactions, various strategies can be employed. We provide guidance and support in all cases of voidable transaction claims.
When a company transacts with an unsecured creditor while being insolvent and the creditor gets more than they would have received if they had claimed the debt in a winding up of the company, it is considered an unfair preference. In such a scenario, a liquidator may have the right to retrieve the funds from the creditor. Our professional services include providing urgent advice and help to creditors who receive an unfair preference letter from the liquidator. Additionally, we collaborate with liquidators to recover money from creditors.
In addition to the previously mentioned voidable transactions during company insolvency, there are additional opportunities for the liquidator to recoup funds from third parties. These include transactions conducted while the company was insolvent, unfair loans granted to the company, and transactions related to a director that were deemed unreasonable. Our services include providing guidance and support to individuals who have received demand letters from the liquidator in an effort to challenge the liquidator's claim to recover funds. Additionally, we represent liquidators in their efforts to recover voidable transactions from third parties. Our approach is professional and aimed at achieving the best possible outcome for our clients.
The Bankruptcy Act outlines four types of transactions that can be cancelled by the bankruptcy trustee, including undervalued transactions, transfers designed to evade creditors, transactions involving a third party, and those which give preference to one creditor over others. The trustee has the authority to nullify these transactions and return the assets or funds to the bankrupt's estate. As professionals, we represent both creditors who have received a demand from a bankruptcy trustee and trustees seeking to recover property and money for the bankrupt's estate.
A deed of company arrangement, commonly known as DOCA, is a legally binding agreement between a financially distressed company and its creditors. The purpose of a DOCA is to govern the management of the company and ensure that it can continue to operate while providing better returns to creditors than if it goes into liquidation. Both debtors and creditors need to consider the advantages and risks involved in entering into a DOCA or voting for it. We provide professional advice and guidance to both debtors and creditors regarding DOCAs.
When a debtor fails to comply with a creditor's legal demand and is presumed to be insolvent, the creditor can seek a court order to wind up the debtor's company. To effectively obtain this order, a series of actions must be taken. Our team provides expert guidance and support in navigating the winding-up process. We represent both creditors seeking winding-up orders and debtors contesting such applications. Our professional services ensure that all parties receive the best possible legal advice and representation.
Corporate & Personal Insolvency
Trusted Insolvency Professionals
At Stonegate Legal, our team of experienced insolvency lawyers understand the intricacies and challenges of both corporate and personal insolvency. We provide comprehensive advice and assistance to individuals and companies who find themselves in financial difficulty, as well as to creditors and other stakeholders involved in the insolvency process.
Whether you are a debtor seeking to manage your financial situation, a creditor looking to recover debts owed to you, or an interested party seeking to navigate the complex legal landscape of insolvency, our lawyers have the expertise and knowledge to guide you through the process.
Trusted Insolvency Practitioners & Lawyers QLD
Meet Our Insolvency Lawyers
Wayne Davis is the principal solicitor, legal practice director of the firm, and leads the litigation team. Wayne has an LLB, and GDLP and is admitted to the Supreme Court of Queensland and the High Court of Australia. Wayne is a debt recovery, litigation, and insolvency professional who is experienced in:
Damon Laffin is a solicitor and forms part of the litigation team.
Damon is admitted to the Supreme Court of Queensland and the High Court of Australia. Damon is also presently undertaking to Master of Applied Law (majoring in Litigation) through the College of Law, which is due to be completed in or around February 2023.
Laylah joined the Stonegate Legal team in 2021 as our receptionist and legal assistant. Laylah has worked her way up to paralegal and works in the debt recovery team.
She is currently in her final year of studying a Bachelor of Laws at the University of the Sunshine Coast and has found a keen interest in litigation, contract law and tort law.
Frequently Asked Questions
Insolvency is a term used to describe a company or individual's inability to pay their debts when they become due. Bankruptcy is the legal process of relieving an insolvent individual or company of its debts. It is generally considered to be a last resort for debtors and requires court involvement.
The two main types of insolvency are corporate insolvency and personal insolvency. Corporate insolvency applies to companies and other business entities, while personal insolvency applies to individuals. Each type has its own set of processes, rules, and regulations that must be followed.
Debt restructuring is a process used to renegotiate the terms of a loan or debt agreement. This can involve reducing the amount of debt owed, extending the repayment period, or changing the interest rate. Debt restructuring is often used by companies and individuals in financial difficulty as a way to manage their debts and avoid insolvency.
The assets of a company or individual in insolvency will usually be sold to repay creditors. The proceeds are then distributed among the creditors according to their priority. In some cases, assets may be retained by the debtor in order to help them rebuild their financial position.