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A new chapter

Bankruptcy provides you with the opportunity to have a fresh start on your new chapter.

Eliminate the hills of uncertainty

Our in-house registered Trustee provides you with certainty and clarity on the process of your new journey

Guidance from beginning to end

Our people are with you every step of the way on your path to financial freedom.

What is Bankruptcy?

Bankruptcy is a legal process outlined in the Bankruptcy Act 1966 that provides you the opportunity to start fresh when dealing with unmanageable debt. Declaring bankruptcy means you are released from all liabilities as your trustee will begin to manage your financial affairs. Your trustee will communicate with your creditors as they begin to sell and pay off your debts. The bankruptcy process lasts three years from the statement of affairs.

Declaring bankruptcy sounds daunting but it doesn’t need to be. In Australia, over 17,000 people enter bankruptcy on average each year. Understanding the facts surrounding bankruptcy and breaking the common misconceptions, bankruptcy can provide you with a clean slate.

How We Help Your Business in Bankruptcy

Facing business bankruptcy can be one of the most challenging periods for any company director. The stress of financial strain and overwhelming creditor pressures, coupled with the task of navigating complex legal procedures, can be troublesome. Mackay Goodwin is here to help businesses across Australia find a clear path to recovery, providing expert bankruptcy support that helps stabilise financial distress effectively.

Immediate Protection from Creditors

Once engaged for company bankruptcies, our team works to halt all legal actions and debt collection efforts from creditors. This gives your business the room to strategise and plan without external pressures. Immediate protection is vital in stabilising your business operations and buying time to devise a comprehensive financial recovery plan. Through this initial step, we can initiate corporate debt restructuring measures that form a solid foundation for your financial reorganisation.

Operational Continuity & Stability

Maintaining operational continuity is crucial during financial upheaval. Mackay Goodwin ensures your business continues to operate, which is essential for preserving its value, maintaining customer trust, and keeping staff employed. This approach aids in a smoother recovery while retaining critical business relationships. Continuous operation allows us to implement recovery business bankruptcy strategies effectively without disrupting your company’s fundamental functions.

Expert Negotiation & Debt Management

Our seasoned negotiators work diligently on your behalf to manage creditor communications and renegotiate debt terms. By achieving favourable outcomes in these negotiations, we help restructure your financial obligations to align with your current capacity, enabling more manageable repayments and sustainable business operations.

If necessary, we address any director penalty notices that may pose a personal risk to directors, ensuring comprehensive protection and guidance throughout the bankruptcy process.

Strategic Financial Assessment

We conduct thorough financial assessments to identify the underlying issues contributing to your financial distress. This analysis helps craft targeted strategies that address your business’s specific challenges. Our holistic approach ensures every aspect of your business’s finances is optimised for recovery, laying a sturdy footing for growth and stability.

Understanding Bankruptcy, Insolvency & Liquidation

Understanding Bankruptcy, Insolvency & Liquidation

Bankruptcy, insolvency, and liquidation often mingle in discussions about financial distress, yet their differences are crucial for any business leader to understand. Insolvency is when a business can no longer meet its debt obligations as they come due. Bankruptcy is a legal process through which individuals can be relieved from their debts under strict conditions and oversight. Liquidation specifically refers to the process of selling off a company's assets to pay creditors, often leading to the cessation of business operations.

The Benefits of Early Action: Preventing Company Bankruptcy

Acting sooner rather than later can significantly improve the outcome for businesses struggling financially. Engaging with our experts early in the financial distress process allows us to implement preventive strategies to avoid the more drastic step of bankruptcy and prevent further decline.

Early action facilitates a thorough assessment of your business’s financial health, identifying key issues and implementing proactive measures. This can include arranging a company restructure or exploring options under a deed of company arrangement tailored to prevent business bankruptcies.

Minimising Legal & Financial Risks

The earlier you act, the more likely you can minimise the legal repercussions and financial risks of insolvency and bankruptcy. Addressing financial issues before they escalate means fewer disruptions to your operations and less damage to your business reputation. It also provides an opportunity to communicate effectively with creditors, which can ease tensions and foster cooperative solutions.

Preserving Value & Relationships

Taking swift action helps stabilise your finances and preserve the intrinsic value of your business. It allows for a strategic approach to managing debts without sacrificing the quality of your service or the integrity of your business relationships. Early intervention can turn potential business bankruptcies into opportunities for restructuring and renewal.

Thyge Trafford-Jones

In-House Registered Trustee

At Mackay Goodwin, we have an in-house registered Trustee, Thyge Trafford-Jones who has over 20 years of personal insolvency experience.

In bankruptcy, you will need to appoint a Trustee to manage your bankruptcy. A Trustee communicates with your creditors, manages the estate and sells assets on your behalf to alleviate your debt

With our in-house registered Trustee, we will guide you to get back on the front foot of your finances.

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Finding the path to what’s next
Enjoy financial freedom in three simple steps.
1
Enquire with us today.

2
Have a confidential chat with our in-house Trustee to assess your situation.

3
We will talk you through your options and pathways to financial freedom.

    Preventing Bankruptcy: Safeguard Your Finances

    Don’t let financial distress lead your business to a point of no return. Acting sooner rather than later allows for more effective interventions and better outcomes. Our team is ready to assess your situation and offer strategic solutions that protect and enhance your business’s future, preventing liquidation, insolvency and company bankruptcies where possible.

    Get in touch with Mackay Goodwin today for a free consultation to discuss how our expert guidance can steer your company back to stability and profitability. Let us help you manage your financial issues with clarity and strategic foresight.

    Why Choose Mackay Goodwin for Business Bankruptcy?

    Unmatched Expertise in Financial Recovery

    Mackay Goodwin stands out in corporate recovery and insolvency with our profound expertise and proven track record in handling insolvent businesses and bankruptcies Australia-wide. Choosing us as your insolvency practitioners brings a strategic advantage to your company. Our team comprises ASIC-registered liquidators, CA and CPA-qualified accountants, and ARITA professional members. We understand the intricacies of business financial troubles, offering tailored solutions and strategic insights that align with your business's unique challenges – committed to ensuring compliance and maximising the potential for recovery.

    Bespoke Strategies to Prevent Company Bankruptcies

    As every situation is unique, our strategies don’t offer a one-size-fits-all approach. Instead, our tactics are centred around understanding and acting on your business’s needs. To provide customised restructuring and bankruptcy solutions, we thoroughly examine your business, including a detailed financial analysis and market positioning.

    Our experts can devise plans to address your issues precisely, whether through a small business restructure or more comprehensive measures like navigating through voluntary administration. Each strategy is crafted to reduce your financial burden while maintaining operational continuity. The end goal? Securing your business’s long-term viability and profitability.

    Proactive Solutions for Businesses Facing Financial Hardship

    Directors can face daunting stress and challenges when their business is under financial pressure. You may be dealing with unmanageable bills, hassling creditors, or ATO notices. Our team acts swiftly to address your financial issues, ensuring quick and effective implementation of strategies to mitigate business bankruptcy risks.

    By engaging with us early, you can take advantage of a broader range of restructuring options and minimise the impact of financial distress on your operations. We are here to support you with comprehensive corporate advisory, insolvency services, and restructuring plans that address your immediate needs and prepare for future stability.

    Meet our team of insolvency experts

    All People
    All People

    Bankruptcy FAQs

    In Australia, outlined in the Bankruptcy Act 1966, states the process of bankruptcy usually lasts 3 years and 1 day. At the end of the period, you are then ‘discharged’. However, it is important to note that even after being discharged, the administration may continue until the Trustee states otherwise. The reason of this usually occurs because investigations are still ongoing or there is property to be sold.

    Once you declare bankrupt, it will be stated on your credit file for a period of time. Depending on which is later, the duration is either two years or five years from the date you declared bankrupt.

    To enter bankruptcy, we will submit a bankruptcy form on your behalf. Entering bankruptcy will relief you from your debts as your first step to financial freedom.

    If you do not have any assets you own, your trustee will total your debts and communicate with your creditors. Your trustee will outline your financial commitments that sets the foundations for you to start fresh.

    Understanding the Difference Between Liquidation and Bankruptcy

    Understanding the Difference Between Liquidation and Bankruptcy

    Bankruptcy and liquidation are often confused and used interchangeably, but these two terms are actually very different. While both could involve insolvency – the inability to meet debt obligations – …

    Read More

    How to Avoid Company Bankruptcy or Liquidation

    Sometimes, a company bankruptcy or liquidation is simply inevitable. Perhaps the company had a product that exploded in popularity, only to prove to be a fad, and it struggled to …

    Read More
    Contact Us

    Get in touch

    Speak to one of our experts now for a free consultation.
    Enter your details below or call 1300 750 599.

    x

    Get in touch

    Speak to one of our experts now for a free consultation.
    Enter your details below or call 1300 750 599.