Insolvency Specialists in Sydney
Businesses experiencing financial distress may struggle to meet their debt obligations. When a company cannot pay its debts as they fall due, it is considered insolvent. Insolvency can lead to serious consequences, including legal action and asset liquidation.
SV Partners - Sydney's Insolvency Experts
Our Sydney insolvency specialists provide expert guidance to help businesses navigate financial distress. There are two primary insolvency processes available:
- Voluntary Administration – Directors can appoint an administrator to assess the company’s financial position and explore potential solutions. This process may lead to restructuring, liquidation, or a deed of company arrangement (DOCA) to settle debts.
- Court-Ordered Insolvency – If a company fails to respond to a statutory demand, creditors may apply to the court to appoint an external administrator. This process ensures outstanding debts are addressed in accordance with insolvency laws.
Insolvency is a complex financial situation that requires expert advice. If your Sydney business is struggling to meet financial obligations or facing pressure from creditors, speak with SV Partners today to discuss your options.
Sydney Office
The Insolvency Process in Sydney
The insolvency process follows a structured approach to managing financial distress and determining the best course of action for a business. Each case typically involves the following steps:
1. An Insolvency Practitioner is Appointed
Insolvency proceedings begin when a company appoints a Registered Insolvency Practitioner or an external administrator. This may occur voluntarily or through a court order. The appointed practitioner takes control of the company and assesses its financial position.
2. Financial Assessment and Investigations
The insolvency practitioner conducts a thorough review of the company’s financial affairs. This includes determining the extent of outstanding debts, identifying potential misconduct, and assessing whether restructuring options are viable.
3. Creditor Repayments and Settlements
Depending on the company’s financial position, available assets may be sold to repay creditors. If restructuring is possible, a Deed of Company Arrangement (DOCA) or other repayment plans may be negotiated to satisfy outstanding debts.
4. Finalisation and Deregistration
Once the insolvency process is complete, the company may be deregistered with ASIC, ceasing to exist as a legal entity. Creditors can no longer pursue claims against the business after this point.
Insolvency does not always mean the end of a business. Alternative solutions, such as administration and restructuring, may provide a pathway forward. Speak with SV Partners Sydney to explore the best options for your situation.
Director Responsibilities and Insolvency in Sydney
Company directors in Australia have a legal duty to act in good faith and in the best interests of their company and shareholders. When a business becomes insolvent, directors must take appropriate action to avoid personal liability. Directors may be held personally responsible for company debts associated with:
- Unpaid Pay As You Go Withholding (PAYGW)
- Unpaid Goods and Services Tax (GST)
- Unpaid Super Guarantee Charge (SGC)
- Director personal guarantees
The financial impact of company insolvency can be significant, potentially leading to personal insolvency or bankruptcy for directors. Failing to act appropriately in times of financial distress can also result in severe legal consequences.
If your company is facing insolvency or you have received a Director Penalty Notice (DPN) from the ATO, immediate action is critical. Contact SV Partners Sydney for expert guidance on managing insolvency and minimising personal liability.
Insolvency Consultancy That Finds the Best Possible Outcome
Since 2003, SV Partners has provided expert advisory services across Sydney, specialising in insolvency, restructuring, and financial recovery. Our team offers tailored solutions to help businesses and individuals manage financial distress and regain stability.
We assist with insolvency, bankruptcy, business turnaround, restructuring, and financial advisory, ensuring you have the proper guidance for your circumstances.
Based in the heart of Sydney, SV Partners supports private individuals and corporate clients across the city. Whether you're facing financial uncertainty or seeking strategic advice, our experts can help you navigate the challenges and take control of your financial future.
