The Government initially offered a scenario where bank loan repayments and leases/rents were frozen, and further that any creditor wishing to pursue a debtor had to have a debt greater than $50,000 and had to give six months’ notice of intent to recover. One of the other big bonuses for directors during this period was the protection from insolvent trading during this period. The cut off for these benefits was originally 28 September 2020. However, they have been extended to 31 December 2020.
Are you protected legally?
A recent article from ARITA suggests that the Directors protection from insolvent trading only applies if the Director places the company into some form of insolvency administration prior to the cut off date. Whilst it may be that the date will be extended, there is no guarantee, and therefore business owners need to consider where they stand.
Are you insolvent?
The Government recently announced a new insolvency regime, which will kick in when the current benefits cease. These new benefits (are still significantly short in detail) but are aimed at providing a streamlined ‘low cost’ form of insolvency. Traditionally, the director loses control of the business, and the Liquidator takes over. This new regime is set to allow the business owner to remain in control and maintain the business operations whilst the administrator works with the owner to develop a proposal to creditors. There are fixed fees, less bureaucracy (investigations, reporting and need for meetings) and a simplified dividend process. The Federal Budget due 6 October 2020 will likely provide more detail on how this process will work.
What do you need to do?
The bottom line is that business owners need to act now. Get the health of their business checked to see whether they qualify for the streamlined process or what they have to do to become eligible, and even whether this option will work for them.
There are limited numbers of Liquidators, and if the expected rush of > 230,000 businesses intend to access this service, those at the end of the queue will suffer.
We Offer Free Bankruptcy Advice.
It is our belief that these businesses need to act now. Consult with a Liquidator to discuss options, determine eligibility (or suitability), and get ahead of the pack. Time is of the essence for business owners to make informed decisions.
We suggest you contact us for a no obligation, free, confidential health assessment of your business.
I made an appointment with Andrew after finding him on google. I was nervous and apprehensive about what to expect but he made the process of bankruptcy extremely uncomplicated and stress free, allowing myself the opportunity to get the fresh start I was so desperate for. Thank you Andrew I could not recommend you enough.
Making the decision to go bankrupt was not easy however once I had spoken to Andrew i felt all my anxiety disappear. Andrew does not judge you and he has an innate ability to put you at ease. He took care of the whole process for me again reducing the stress involved with completing paperwork.
Thank you very much.
I will definitely recommend Andrew Bell to anyone contemplating bankruptcy. Don't wait! Andrew is there to help. With his knowledge, he can advise you of the best path to take and assist with the mind boggling paperwork.
Best of all, he is there for you through your entire bankruptcy period. Get your life back, it's not as bad as you think. Thank you Andrew for lifting the burden and allowing me to move on.
I saw Andrew for 'advice only' on possible bankruptcy due to a divorce. Left an hour later with the paperwork all done and feeling like a new person!
Andrew was extremely welcoming and made me feel so comfortable with my decision to proceed immediately.
This was the best investment I have ever made and cannot speak highly enough of Andrew. He doesn't just give excellent service his follow up afterwards is amazing. Thankyou Andrew you made my 'new' life so easy to achieve!
Andrew was very helpful in helping me through the bankruptcy process, as a single mother left with a massive debt from my ex and our previous marriage. I was struggling to keep my head above water on a week to week basis.
Andrew made me feel at ease immediately and helped me every step of the way, he happily and professionally answered any and all questions I had before, during and after the process. Thanks so much for your help Andrew!
Would highly recommend Andrew to anyone having financial difficulties. Andrew made me feel very comfortable - he took care of everything and keep in regular contact with me throughout the whole process.
Service was fantastic and he also keep in regular contact with me when everything had been finalised Thanks Andrew! can now get my life back on track.
Very prompt service and excellent source of knowledge and information, I highly recommend Andrew's service for a quick turn around of circumstances.
Andrew put my mind at ease in one easy appointment. Very satisfied with the outcome and service provided. Highly recommend Andrew.
Andrew was a steadying hand with his advice.Showing that things aren't as bad as first thought nor any obstacle insurmountable. If you have questions needing answers, Andrew is the person to ask. Thanks for your advice Andrew.
Andrew was very knowledgeable, caring, helpful and compassionate when I went and saw him. He made me feel that I wasn’t the loser and failure that I thought I was being. Even down to the box of tissues on the table.. which I needed. Highly recommend to go see Andrew if your struggling. There is life after!
Andrew and his team do an excellent job of helping their clients with bankruptcy advice and it is a pleasure to work with him.
Don't hesitate contacting Andrew, I was stressed, struggled sleeping through debt. Andrew put me at ease. He listened to my situation and we decided on my next move. Andrew is professional and easy to talk too. I would recommend highly to anyone who wants help to give him a call. I appreciate your support Andrew. Regards Brett.
Andrew has given me back my life!!! After living paycheck to paycheck, I didn’t know what to do. Until I made the big step and booked an appointment with Andrew. As soon as I left his office I felt a huge weight lifted!!!
Andrew was prompt, organised, friendly and efficient with the processing of my documents and made everything very simple for me so I didn’t need to deal with the added pressure and stress. Thank you Andrew for allowing me to start afresh and getting it done within a matter of weeks.
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