Insolvency & Restructuring Lawyers Melbourne

Yes, if a Deed of Company Arrangement (DOCA) is agreed upon, the company can restructure and continue operations, aiming for a better outcome than immediate liquidation.

During bankruptcy, you must request permission from your trustee to travel overseas. It's an offence to travel without written consent, and your trustee may ask for further details to consider your request.

In Australia, the primary corporate insolvency procedures include:

• Liquidation: Winding up the company's affairs and distributing assets to creditors.
• Voluntary Administration: Appointing an external administrator to assess options for the company's future.
• Receivership: A secured creditor appoints a receiver to recover owed funds.

Bankruptcy is a legal process where individuals declare their inability to repay debts. It allows for the discharge of most debts after a specified period, typically three years, but may involve the sale of assets and can impact credit ratings and future financial opportunities.

Employees may be entitled to outstanding wages, leave, and other entitlements. If company funds are insufficient, the Fair Entitlements Guarantee (FEG) scheme may provide assistance.

Bankruptcy can affect your ability to obtain future credit. If you apply for credit over a set amount, you must inform the credit provider of your bankruptcy. Additionally, your name will permanently appear on the National Personal Insolvency Index (NPII), a searchable public register listing insolvency proceedings in Australia.

Voluntary administration involves appointing an external administrator to assess the company's financial situation and recommend options, such as restructuring or liquidation, to maximize returns for creditors.

Consequences of bankruptcy include:

• Your name permanently appearing on the National Personal Insolvency Index (NPII).
• Potential restrictions on overseas travel without trustee consent.
• Possible sale of certain assets to repay creditors.
• Impact on credit rating and future borrowing capacity.

Liquidation is the process of winding up a company's financial affairs, selling its assets, and distributing the proceeds to creditors. This process leads to the company's dissolution.

A PIA allows for a flexible arrangement to settle debts without the formalities of bankruptcy. Unlike bankruptcy, a PIA does not automatically disqualify you from managing corporations, and you may retain control over your assets, subject to the agreement's terms.