Frequently asked questions about insolvency
Facing financial difficulties is stressful and emotional. We answered to some frequently asked questions about insolvency!
What is Phoenixing?
When it comes to pre-insolvency, there is often a misconception regarding business restructures or phoenix transactions.
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?
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.
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.
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.
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.
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.
