Insolvency and Bankruptcy

Insolvency law is a complex area, requiring lawyers that not only have commercial acumen but are strategic in their thinking. They need to be experienced in the contentious and non-contentious aspects of insolvency, turnarounds, restructuring and ongoing risk management. They also need to be willing to take the time to:

  • understand the bigger picture

  • identify the key issues

  • develop a realistic strategy that enables you to move forward

If you sense that you are about to face major financial difficulty in your business, you need to act quickly and obtain the best possible advice. Our insolvency and bankruptcy lawyers draw on their combined experience in corporate and commercial matters, M&A, tax, and insolvency law to create the best outcome for your legal, financial, and commercial circumstances.

We act for both companies and insolvency practitioners, as well as secured and unsecured creditors. This means that we understand all sides of the insolvency story and can come up with solutions that are both commercial and pragmatic.

We can assist with:

  • Business recovery

    If your business is at risk of becoming insolvent, we can analyse your situation and recommend appropriate business recovery actions. These could include securing new funding, restructuring, renegotiating existing debts, working with pre-insolvency advisors and administrators, etc.

  • Corporate restructuring

    This involves making significant changes to your legal structures, finances and debts, operations, workforce, and other structures. Our bankruptcy and insolvency lawyers can help you strategies and manage processes to make your struggling business viable again, more profitable, or better adapted to your changing commercial needs.

  • Corporate insolvency

    A company is considered insolvent when it is unable to pay its debts as they fall due. As a general rule, insolvent companies should not continue trading; otherwise, directors may be caught under insolvent trading provisions including civil and criminal penalties. Instead, directors, shareholders, creditors, or the court could petition the company to enter into administration.
    We can advise you on various insolvency procedures and other legal processes, such as litigation, asset tracing and recovery (including investigations), corporate finance, and property transfers.

  • Voluntary administration

    Entering into voluntary administration is an option for companies in financial distress. We can help you draft deeds of company arrangements (DOCA). A DOCA is generally an agreement negotiated with the administrators and the directors of the company based on multiple issues but mainly, the actions against the directors. The directors generally put up money for the company to distribute to the creditors whilst extracting themselves from claims. This, in turn, generates the best possible return for creditors particularly when the company would not otherwise distribute.

  • Liquidation

    Liquidation or winding up can be voluntary (by members or creditors) or compulsory (by court order). We can assist you or liquidators starting from the collection and conversion of your business assets into cash through to enforcing and defending claims.

  • Receivership

    Our insolvency lawyers are equipped with the practical and legal experience to assist receivers–from preserving and protecting assets under receivership, selling or leasing the debtor's assets, down to negotiating for retention and compensation.

  • Assistance for directors

    In the event of insolvency, directors should understand what their rights and obligations are, as well as the assistance that is available to them. Our insolvency and bankruptcy lawyers can advise you on how to protect yourself with "safe harbour" provisions, defend claims of preferential payment, insolvent trading, and others.

  • Assistance for creditors

    Whether for individual or business bankruptcy, we are able to represent creditors and assist them from recovering debt and collateral to enforcement of securities and priority of security disputes.

If you need legal advice on business restructuring, insolvency or bankruptcy, give our insolvency lawyers in Melbourne a call on +61 3 9052 3214 or email us at info@tnslawyers.com.au

Frequently asked questions about insolvency and bankruptcy

Pursuant to section 588G of the Corporations Act, it's the company director's duty to prevent an insolvent company from trading. Otherwise, they could face civil penalties, compensation proceedings, and criminal charges.

Yes, the Australian Financial Security Authority (AFSA) is responsible for the regulation of the insolvency profession, specifically trustees and debt agreement administrators.

You can file bankruptcy even without a lawyer. However, bankruptcy is just one of the formal options available to manage your debt. It's strongly recommended to seek the help of a qualified lawyer because bankruptcy has both financial and legal consequences.

Why Choose TNS Lawyers

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We specialise

We only do what we do best. We don’t dabble in areas that we don’t practice in every day.

We care about results

We are results-driven. People say you should focus on the journey but we disagree. We focus on the results we get for our clients.

We personalise

Ever wonder what it’s like being able to “phone a friend” and that friend happens to be your lawyer? We make sure you have a good experience with us every step of the way.

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