Frequently asked questions about insolvency
Facing financial difficulties is stressful and emotional. We answered to some frequently asked questions about insolvency!
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What is Phoenixing?
When it comes to pre-insolvency, there is often a misconception regarding business restructures or phoenix transactions.
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Owing money to the ATO?
What happens when you owe money to the ATO? Is it possible to enter into a payment plan with the ATO?
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What happens in liquidation?
On the day the liquidator is appointed, the company director is no longer in control - their powers as a director are suspended.
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What is insolvency?
Simply put, insolvency means a business is not able to pay its bills as and when they are due.
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When to use Debtor Finance?
Debtor finance can be a very flexible form of funding. As the business grows, its debtors increase and it issues more invoices. The finance facility can grow in line with the growth of the business.
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Director Penalty Notice
Or DPN for short. If a company does not meet its PAYG withholding, goods and services tax (GST) or SGC obligations, the director may become personally liable for the company debt.
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What is a Creditor's Statutory Demand?
A Creditor’s Statutory Demand is a letter of demand issued against a company for the recovery of a debt owed.
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What's a small business restructure?
This is a process for formal negotiation with business creditors where an offer is made in full and final settlement of the debt owed.
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