Strategic Insolvency

Having formed a strategic partnership with the Harris Group of Chartered Accountants, we now offer services in specific areas of tax, personal and corporate insolvency and accounting.

Pre-insolvency Strategic Advice

Avoiding insolvency is undoubtedly the best outcome for all parties involved. We have the expertise and experience to provide you with practical strategic advice which you may use in order to avoid personal bankruptcy or business insolvency.

Personal Insolvency

• Debt Agreements – Part IX

• Debt Agreements allow people with limited income and assets to avoid falling into bankruptcy entering into an agreement with their creditors in regards to the repayment of debts over an extended period of time, usually 3 – 5 years.

  
  
• Personal Insolvency Agreements – Part X

• Personal Insolvency Agreements are for high-income individuals with a high net worth. Under Part X of the Bankruptcy Act, a person may call for a meeting of his or her creditors at which the person may propose a plan for satisfying the person's debts under a Personal Insolvency Agreement.

  
  
• Voluntary Bankruptcy

• In certain circumstances, it may be appropriate for a person to voluntarily declare bankruptcy by filing a Debtor's Petition in the Court. Filing for bankruptcy affords the bankrupt with certain strategic advantages and may allow the person to have the bankruptcy annulled under Section 73 of the Bankruptcy Act by way of an informal agreement with creditors.

  
  
• Bankruptcy Annulment (Section 73 Proposals)

• Under the Bankruptcy Act, a person who is a bankrupt may propose an arrangement with his or her creditors for the repayment of debts. Upon acceptance of the proposal, the person's bankruptcy status is annulled. Where Part IX or Part X arrangements have not been appropriate, we have assisted our clients to use the Bankruptcy-Annulment strategy to expeditiously achieve solvency.

  
  

Corporate Advisory

We pride ourselves in our ability to provide quality practical advice for private business people and corporate clients in order to avoid or survive business and corporate insolvency. Whether you operate a small to medium enterprise, or a large corporate network, we are capable of assisting you with financial planning, operational and corporate restructuring and strategic business development to achieve your short- and long-term goals.

Corporate Insolvency

• Deeds of Company Arrangement

• A Deed of Company Arrangement (DOCA) is a formal written agreement entered into between an insolvent company and its creditors in order to provide a fast, flexible and inexpensive form of administering the company in order to return it to solvency. The benefits of DOCAs to creditors are that they are likely to receive a more favourable dividend from the company than from liquidation. Creditors may also select their own Administrators of the DOCA.

  
  
• Schemes of Arrangement

• A Scheme of Arrangement is a court-approved arrangement entered into between an insolvent company and its creditors or members. Schemes of Arrangement may be used to avoid insolvency in the same manner as Deeds of Company Arrangement. However, unlike DOCAs, Schemes of Arrangement take into account the rights of creditors against third parties such as guarantors.

  
  
• Voluntary Administration

• A Voluntary Administration involves the appointment of an external entity (the administrator) to take control of the affairs of the company for a period of usually 4 – 6 weeks in order to allow the directors of the company to propose a resolution of the company's financial difficulties to its creditors.

  
  
• Receivership

• A secured creditor of a company may in certain circumstances appoint a receiver to take control of the debtor company's assets for the purposes of liquidating them to repay the outstanding debt owed to the secured creditor. We may assist you where a secured creditor wishes to appoint a receiver in order to ensure that the most favourable outcome is achieved.

  
  
• Liquidation / Winding Up

• Where insolvency cannot be avoided or a viable work out strategy is not available, the shareholders of a company may have no other option but to appoint an external official to liquidate the company's assets in order to repay debts to creditors. Upon completion of liquidation, the company is deregistered.

  
  

Australian Tax Office Disputes

Given the current economic climate, disputes with the Australian Taxation Office (ATO) are becoming more and more common given that the ATO is likely to become a hostile creditor in the recovery of tax debts. We offer highly specialised services relating to tax matters, including:

• Objections;
• Administrate appeals;
• Federal Court proceedings;
• Negotiated settlements;
• Interpretation of relevant taxation laws.

Together with the Harris Group of Chartered Accountants, we are ready to provide you with the advice and assistance necessary in order to resolve your dispute with the ATO effectively and with minimal cost.