Insolvency Lawyers Melbourne

Have a question? Contact us

    If you have been searching for experienced insolvency lawyers in Melbourne, you are at the right page.

    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 difficulties in your business, you need to act quickly and obtain the best possible advice.

    Our 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 story and can come up with solutions that are both commercial and pragmatic.

    What Our Insolvency Lawyers Can Help You 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 advisors and administrators, etc.

    Corporate restructuring

    This involves making significant changes to your legal structures, finances and debts, operations, workforce, and other corporate restructures. 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 procedures and other legal processes, such as litigation, asset tracing and recovery (including investigations), corporate finance, and property transfers.

    If you need legal advice on insolvency and restructuring, 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.

    In Australia, corporate insolvency differs significantly from personal insolvency. For companies registered with the Australian Securities and Investments Commission (ASIC), the ultimate outcome of insolvency is typically liquidation. In contrast, for individuals, the final stage is often bankruptcy, overseen by the Australian Financial Security Authority (AFSA).

    When an Australian company faces insolvency or nears this state, several parties may become involved. An administrator, often appointed under Part 5.3A of the Corporations Act 2001, a receiver (potentially appointed by secured creditors), or a liquidator may step in. These appointments usually occur when the company either struggles to meet its financial obligations to creditors on time, or when its total liabilities surpass the value of its assets, as defined in Section 95A of the Corporations Act.

    Bankruptcy, governed by the Bankruptcy Act 1966, is a legal procedure that individuals or partnerships (but not companies) in Australia may pursue to address their insolvency. It’s important to note that not every insolvent person will necessarily file for bankruptcy with the Official Receiver. In many cases, alternative solutions exist. For instance, individuals might negotiate informal arrangements with creditors, enter into debt agreements under Part IX of the Bankruptcy Act, or propose Personal Insolvency Agreements under Part X. These options, facilitated by registered trustees, often allow for debt resolution without resorting to full bankruptcy proceedings.

    When an Australian company faces financial distress, Voluntary Administration under the Corporations Act 2001 (Cth) offers a potential lifeline. This process involves appointing an independent Administrator to swiftly evaluate the company’s options and potentially avert liquidation.

    The appointment of an Administrator can be initiated by various parties, including company directors, secured creditors like banks, or even liquidators from insolvency firms depending on the situation. If viable, the Administrator will strive to keep the business operational, negotiating with creditors ranging from the Australian Taxation Office (ATO) to trade suppliers. The primary outcomes are typically either a Deed of Company Arrangement (DOCA) approved by creditors at a meeting convened under section 439A of the Corporations Act, or the transition into liquidation overseen by the Australian Securities and Investments Commission (ASIC).

    While Voluntary Administration can be a strategic path to corporate restructuring, it’s crucial to note that the Administrator’s duty lies with the company and its creditors collectively. Thus, if you’re a creditor or a director registered with ASIC, it’s imperative to seek personalised advice from qualified practitioners, such as those accredited by the Australian Restructuring Insolvency and Turnaround Association (ARITA), before opting for Voluntary Administration. This ensures you fully understand the implications for your individual position within the broader insolvency process.

    Why Choose TNS Lawyers for Insolvency Matters

    We are rated 4.8 stars on Trustpilot and 5 stars on Google Business Profile.

    img-3

    We specialise

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

    img-4

    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 to avoid personal bankruptcy.

    img-5

    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.

    img-6

    Years of Experience

    Our legal team has extensive experience as insolvency and bankruptcy lawyers for our clients. We have worked in many industries, allowing us to provide the legal aid your business needs.

    img-7

    Good Communication

    TNS Lawyers cut down on the legal jargon. We want you to understand everything that goes on with your matter. Our team gives direct and sound advice so you feel confident about your legal decisions.

    img-8

    Efficiency

    We at TNS Lawyers can help you on individual or business bankruptcy to save time and money. With our undivided attention, our team ensures that you get the outcomes you need in time.

    Our Services

    We provide specialist legal services in a range of areas

      Call Now Button