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Insolvency & Bankruptcy
Navigating insolvency requires careful planning to protect assets, manage risk, and limit personal liability. Our insolvency lawyers in Melbourne and Mount Waverley advise businesses, directors, and individuals on complex restructuring and bankruptcy matters. We provide urgent assistance with Statutory Demands, liquidation issues, and Director Penalty Notices (DPNs) to ensure you meet strict legal deadlines and minimise financial exposure.
Voluntary Administration & Restructuring – Developing strategic turnaround plans to restructure debt and avoid liquidation where possible. We advise directors on their duties to avoid insolvent trading claims during the restructuring phase.
Liquidation & Winding Up – We guide company officers through the Creditors’ Voluntary Liquidation (CVL) process, ensuring all statutory duties are met. For a detailed breakdown of director obligations during this period, refer to the official ASIC guide for directors.
Preference & Insolvent Trading Claims – Representing clients in defending or pursuing claims brought by liquidators, including unfair preference claims, uncommercial transactions, and claims against directors for personal liability.
Personal Bankruptcy & Part X Agreements – Assisting individuals and trustees with bankruptcy proceedings under the Bankruptcy Act. We advise on asset protection, Personal Insolvency Agreements (PIA), and annulments to support your financial recovery.
Statutory Demands & Bankruptcy Notices – Providing immediate legal intervention to set aside or issue demands and notices. We handle the litigation required to protect your company’s standing or enforce a debt.
FAQs: Common questions about statutory demands, bankruptcy notices, and director risks are answered below.
Frequently Asked Questions About Corporate Insolvency and Personal Bankruptcy
My company has received a Creditor’s Statutory Demand. What do I do?
A statutory demand has strict deadlines (21 days), so you should seek advice immediately. If you dispute the debt, you may be able to apply to the court to set the demand aside. If the company cannot pay the debt, early insolvency advice can help you understand your options and protect directors from personal risk, such as insolvent trading claims.
I have received a bankruptcy notice. What do I do?
Act quickly, as a bankruptcy notice has strict deadlines (usually 21 days). You must either pay the debt, enter a payment arrangement, or apply to the court to set the notice aside if you dispute the amount. If you do nothing, you may commit an “act of bankruptcy,” allowing a creditor to ask the court to make you bankrupt. Bankruptcy has serious consequences for your assets and credit.
Can you tell me whether I will be successful if I litigate an insolvency matter?
While we cannot guarantee an outcome, we provide realistic advice on your prospects and the risks involved. In insolvency, "success" often involves mitigating personal exposure or reaching a commercial settlement with creditors. For complex matters, we may engage a specialist barrister to provide additional advice on your position.
How expensive is it to deal with insolvency proceedings in Court?
The cost depends on the complexity of the financial situation and the court involved. Many insolvency matters, such as setting aside a statutory demand, can be resolved before a final hearing. We provide cost estimates and focus on efficient strategies to protect your remaining assets.
Is my conversation with an insolvency lawyer confidential?
Yes. Information disclosed for the purpose of seeking legal advice is generally covered by legal professional privilege. This applies to your initial enquiry, phone calls, and consultations, even if you do not end up retaining our firm. Open communication is essential for us to provide accurate advice on financial distress.
What is the difference between a solicitor and a barrister in an insolvency case?
Your solicitor is your primary advisor and the manager of your file, handling negotiations and paperwork. If your insolvency matter requires a court appearance (such as a winding-up application or a bankruptcy hearing), we may retain a barrister, a courtroom specialist, to represent you and provide high-level advocacy.