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“Can’t thank you enough for your support both professionally and personally”
The challenges that personal or corporate insolvency create extend to all aspects of your life.
McLaughlins Lawyers specialise in timely and strategic outcomes that limit, or indeed avoid, the negative impact of insolvency.
We routinely offer our clients services in the following related areas:
- Company liquidation, administration and receivership
- Arrangements with creditors
- Claims by creditors
- Claims by creditors, trustees in insolvency, receivers, administrators and liquidators
Even after your initial conversation with McLaughlins Lawyers, you will gain the confidence of knowing we are here to protect you during this time of challenge.
Call us today on 07 5591 5099.
What is Insolvency?
Insolvency is when a company or person can’t pay debts when they are due.
There are several options available to an insolvent company or person:
- the most common corporate insolvency procedures for an insolvent company are liquidation, voluntary administration and receivership
- the available personal insolvency procedures for an insolvent person are bankruptcy and personal insolvency agreements.
The Australian Government’s insolvency reforms for small business come into effect on 1 January 2021. These reforms follow the temporary measures introduced in March 2020 in response to the COVID-19 pandemic. These measures only apply to eligible incorporated small businesses with liabilities of less than $1 million.
The reforms include a new:
- debt-restructuring process for incorporated small businesses
- simplified liquidation process for incorporated small businesses
- ‘class’ of registered liquidator
What are the eligibility criteria for restructuring?
To be eligible for a restructuring, on the day on which the restructuring practitioner is appointed:
- total liabilities of the company must not exceed $1 million
- no person who is a director of the company, or who has been a director of the company within the 12 months before the appointment of the restructuring practitioner, has been a director of another company that has been under restructuring or subject to the simplified liquidation process within the period of the preceding seven years, unless they are exempt under the regulations
- the company must not have undergone restructuring or been the subject of a simplified liquidation process within the preceding seven years
What is simplified liquidation?
A simplified liquidation process is a streamlined creditors’ voluntary winding up for companies that have liabilities less than $1 million.
It applies only to a creditors’ voluntary winding up of a company where the event that triggers the start of the winding up occurs on or after 1 January 2021.