1800 463 328 help@iodebt.com.au

Business Debt Solutions

If your business is facing financial stress, it is time to know your options. Let your business debt become our solution.

We can help.

When a business is overrun with debts, it can be difficult to manage and cause financial stress to not only the business owner, but all involved. 

Thousands of Australian businesses experience financial stress every year. With early professional help, many businesses have avoided insolvency and closures.

Insolvency Options are experienced in resolving situations where businesses are faced with unmanageable debts. 

Let us take the stress out of the situation and help you get back on track.

Small Business Restructuring Plan

If your business is struggling to pay its debts, a Small Business Restructuring Plan may be the right option for you. This option gives business owners the time to put forward a plan to creditors to pay off their debt, either in full or in part, over a 3 year period. The Small Business Restructuring Plan allows business owners to remain in control of their business, however under the supervision of a Restructuring Practitioner (such as Insolvency Options). 

Insolvency Options will provide the expert advice you need about the restructure of your business and what is involved. We work with you to prepare, propose the plan to creditors, implement and see the Small Business Restructuring Plan through to completion. This is to ensure the process runs smoothly and all debts are paid off within the necessary timeframe. Insolvency Options are experts at relieving business owners of their financial pressures. 

With a Small Business Restructuring Plan, we are able to work with you to get your business back on track. 

If you are unsure whether you meet the requirements, please book in a free consultation with Insolvency Options.

Call 1800 463 328 and we can discuss your business debt solutions today. Visit our FAQs for more information on Small Business Restructuring Plan.

Are there eligibility requirements for a Small Business Restructuring Plan?

To benefit from a Small Business Restructuring Plan, there are eligibility requirements (must satisfy all requirements). 

 

      • The business must be operated by a company
      • Total liabilities must be less than $1 million to creditors (excluding employees entitlements)
      • All employee entitlements including superannuation are up to date
      • All tax lodgements are up to date
      • The business must not have previously undergone a Small Business Restructure or a Simplified Liquidation process in the past 7 years
      • Both the current and former company directors acting within the past 12 months must not have been a director of a company that has utilised a Small Business Restructuring Plan or a Simplified Liquidation in the past 7 years

Other Business Debt Solutions

When faced with business financial stress, we know things can be daunting. However, under the circumstances you may want to continue trading but don’t know how. Alternatively, you may want to wind up your business affairs or you may just need some advice. 

Insolvency Options are the experts you can turn to when you need help.

Voluntary Administration or Deed of Company Arrangement

A Voluntary Administration is an option for businesses that are unable to pay their debts, and want to resolve their future to continue operating. A voluntary administration occurs when the company directors seek professional assistance and appoint an Administrator (such as Insolvency Options). 

The purpose of a voluntary administration is to save the business if possible. It is also to seek immediate debt relief for company directors by appointing an Administrator to take complete control over the business’ operations during the Voluntary Administration period. This happens whilst the future of the company is considered.

One of the main differences between a Small Business Restructuring Plan and a Voluntary Administration is that there are no strict eligibility requirements for a voluntary administration. Both options are for business owners that wish to continue their business operations into the future.

Under a Voluntary Administration, the experts at Insolvency Options assess the company’s debts, assets, affairs and financial situation.

 This assessment is reported back to creditors (all parties that are owed money including employees), with various available options. This report recommends solutions for the greater good of the creditors and all parties involved. Some of these recommendations may include; ending the administration and returning control back to the business owners. Or seeking approval for a Deed of Company Arrangement to pay part or all of its debts or wind up the company.

A Deed of Company Arrangement (DOCA) is a formal agreement between the company and its creditors. The aim of a Deed of Company Arrangement is to offer an amount to creditors in satisfaction of their debt. It is an alternative to liquidating the company. The creditors must agree to the Deed of Company Arrangement in order for the company to continue operating. If the Deed of Company Arrangement fails or creditors are unwilling to come to an agreement, the company will enter into the liquidation process.  

We are experts at determining the best possible business debt solutions. No matter the amount of debt or the situation, we can help. 

Have questions? Visit our FAQs.

 

Creditors’ Voluntary Liquidation

We understand that sometimes unmanageable debt can lead to a situation where business owners just want to dissolve the business. Additionally, dealing with debt is stressful and sometimes liquidation is either unavoidable or the most appropriate solution under the circumstances. Our team will help ease the stress and anxiety that debts can cause on you and your family. 

A Creditors’ Voluntary Liquidation takes place when the shareholders of an insolvent company agree to wind up the company. The shareholders will seek professional assistance and appoint a Liquidator.  

The role of a Liquidator (such as Insolvency Options) is to wind up the business’ affairs; realise all business assets and distribute the proceeds fairly to employees and creditors. Lastly, deregistering the company. When a company is in this process (or after the liquidation is finalised), unsecured creditors cannot take legal action for unpaid debts. This can provide some relief for shareholders of the company. 

If you are unsure whether liquidation is right for your business, contact our team today on 1800 463 328. We will work with you to discuss your business debt solutions and take the stress out of the situation. 

Court Liquidation

A Court Liquidation occurs when a Liquidator is appointed by the Court to wind up (liquidate) a company. A Court Liquidation is commonly instigated by a creditor that has made an application to the Court to liquidate the company due to unpaid debt. In addition, company directors, shareholders and the Australian Securities and Investments Commission are also able to make an application to the Court to liquidate a Company. 

This is a key difference between a Creditors’ Voluntary Liquidation and a Court Liquidation; whereby an application is submitted to the Court. The most common of the two is a Creditors’ Voluntary Liquidation. The role of the Liquidator is much the same in both liquidation processes. The Liquidator’s purpose is to take control of the company and wind up its affairs in an orderly and fair manner to creditors.

It is important to know that if you have unpaid tax debt, the ATO may take recovery actions against your company. This may result in your company being liquidated through an application made to the Court. 

If you have company debt and you are unsure of your options, contact our friendly team today for a free confidential consultation.  

What is liquidation?

Liquidation (or winding up) is a term used when a company is being wound up. There are three types of Liquidation:

    1. Creditors’ Voluntary Liquidation – insolvent winding up initiated by the Company,
    2. Court Liquidation – insolvent winding up initiated by a creditor,
    3. Members’ Voluntary Liquidation – solvent winding up.

What happens to the company directors during a Creditors’ Voluntary (or Court) Liquidation?

After the appointment of a Liquidator, the Directors of a company have no director powers. They must assist the Liquidator in disclosing all properties, assets, books and records and any other records regarding the company’s affairs. A director must provide full disclosure of the company’s affairs to the Liquidator.

Do employees receive any of their entitlements after a company goes into Creditors’ Voluntary (or Court) Liquidation?

Employees are treated in priority over unsecured creditors when it comes to any debts that can be recovered. If there are recoverable funds after liquidator’s fees and expenses are paid, employees have rights to be paid their entitlements. Their entitlements are categorised in a priority order; outstanding wages and superannuation, outstanding leave entitlements, retrenchment or redundancy pay.

What are the duties of a Company Director?

It is important to know that even if you appoint a third party to look after your company’s affairs, you still must comply with your legal obligations. Under the Corporations Act 2001, being unaware of what is happening in/with your company is not an exemption to the law.  

As a Director, you must be fully aware of the state of your company’s affairs, financial position and be involved in the management and operations. You must ensure that you act in good faith and in the best interests of the company. It is also your duty to have full knowledge of each decision’s impact on the company’s performance (including financial implications).

What if I know or suspect that my company cannot pay its debts?

You may be trading insolvent if this is the case and there may be legal consequences. You need to seek immediate advice from a qualified professional, such as Insolvency Options.

Personal Debt Solutions

Debt Agreements

A Debt Agreement is a legally binding agreement between you and your creditors to settle your debts. This option is an alternative to Bankruptcy. 

Find out if a Debt Agreement is right for your situation.

Personal Insolvency Agreements

A Personal Insolvency Agreement is also a legally binding agreement between you and your creditors. It is an alternative option to bankruptcy. While both options are Agreements to satisfy debts, there are several differences. 

Bankruptcy

Bankruptcy can often seem like an intimidating and daunting option. Our team understands that and sometimes this may be the only option for total debt relief. It is important to know all your options before considering bankruptcy.

 

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Our Free Consulation Service

We know taking the first step to call for help is not easy.

Our initial step in your consultation is to listen to best try and understand your situation. Your confidentiality is just as important to us as it is to you.

Our consultation also covers what your options are; the benefits, considerations, costs and expected outcomes of each option. Anything that you have disclosed to us during this consultation is kept completely confidential.

Find out what you should expect from our free consultation service. Speak to our business recovery and debt solutions experts today.

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