There are many reasons why a business may need to go into insolvency but one of the most common reasons is that the business has debts which are not being paid. The first step in working out whether your business needs insolvency lawyers in Sydney is to write down all of your debts and then work out how much money you owe each creditor.
Next, make a list of all assets your business has that are worth more than $1,000. Write down any other valuable items that are not assets such as furniture or vehicles. After that, it’s time to think about what will happen if your business goes into liquidation. It’s important to know that there are different types of liquidations and each comes with its own special rules and procedures.
A common type of liquidation is called ‘bankruptcy’. This means that you will be able to sell off some of your assets while keeping others in order to pay off creditors as quickly as possible.
You may not be able to Pay Employees or Tax Debts
The consequences of not paying employees or tax debts can result in problems for any business owner, even if they have enough money for a few months. This is especially true if there has been an increase in operating costs or expenses due to a rise in wages or salaries over time. In order to avoid bankruptcy proceedings from being filed against them, many businesses will make up these debts with personal loans or overdrafts which can lead to further financial problems down the line
You’re not Aware of Your Options
The legal process of going into voluntary administration or liquidation can be very confusing, especially if you haven’t dealt with these types of issues before. Having an experienced insolvency practitioner on hand will help you make the right decisions for your business and ensure that everything runs smoothly during this period of uncertainty.
You’re not sure how much time you have left to run your business. Insolvency proceedings can be lengthy, which means there’s a lot at stake when it comes to ensuring everything runs smoothly while the bankruptcy process is being undertaken. This is why you need someone who understands how long it might take before your business is sold off or closed down permanently.
It’s Important to Get Advice Before Things Get Worse
A time-limited appointment means that our expert team will be able to help you deal with these issues quickly and effectively — so that when things do go wrong, there won’t be any unnecessary delays in dealing with them. A poorly handled insolvency is likely to have lasting consequences for everyone involved – including those who weren’t involved directly at the time! You need to restructure your debts. For example, if you owe the bank $20,000 and your annual turnover is $50,000 and your assets are worth only $30,000 then bankruptcy could be an option if all other avenues fail. You’ve been hit by unexpected costs such as a flood or fire damage. The court will appoint an administrator who would work out how much each creditor should receive so that they can get back on track as soon as possible.
You’re in danger of losing everything. For example, if you’ve been trading without any financial security measures in place then the court may decide that it’s time to wind up your business completely and distribute all its assets among its creditors.