Image for the article: A Complete Guide to Simplified Debt Restructuring

A Complete Guide to Simplified Debt Restructuring

Estimated reading time: 27 minutes

Simplified debt restructuring is a new process available as of 1 January 2021 to support financially distressed small businesses. In simplified debt restructuring, an independent professional known as a ‘small business restructuring practitioner’ is appointed to a distressed debtor company to assist with restructuring the company’s debt via development of a ‘restructuring plan’.

Image to article Unfair Preference Claims

What are Unfair Preference Claims by a Company Liquidator?

Estimated reading time: 5 minutes

In this article, we look at the definition of ‘unfair preference’ claims — a mechanism used by liquidators to claw back some prior payments to creditors. We also look at the available defences for an unfair preference claim, and how the new ‘simplified liquidation’ procedure for small businesses deals with unfair preference claims.

Ilustration to the article "What is Wage Theft?"

What is Wage Theft?

Estimated reading time: 5 minutes

Wage theft is the underpayment of employees. Wage theft can occur in a number of ways, for example underpaying wages, not granting entitlements or refusing to pay penalty rates, superannuation, overtime or commissions.

The image shows a scene from the court with the man examination by videoconference

Section 77C Bankruptcy Examinations Are Now Allowed Via Videoconference

Estimated reading time: 5 minutes

An important part of the personal bankruptcy process in Australia is the ability of those overseeing the process to ‘examine’ the individual undergoing bankruptcy or any other relevant person. This is the ability to question that person or those persons, under oath, about their financial affairs, fraud or involvement with the bankrupt. This power is contained within section 77C of the Bankruptcy Act 1966 (Cth) and is sometimes known as a ‘private examination’.

Image for the article: "Business Survival Series: Respect Your Creditors "

Business Survival Series: Respect Your Creditors

Estimated reading time: 5 minutes

Having creditors is a necessary element of business. But those lines of credit extended to your business do not come without some reciprocal obligations. Respecting your creditors should always be a priority. It is vital that you maintain a strong creditor-debtor relationship, even as situations change and become more difficult.

Starting a Business Misconceptions

Business Survival Series: Misconceptions About Starting a Business

Estimated reading time: 4 minutes

Starting a business can be a mystifying process. It involves overcoming complex and seemingly never-ending challenges that can be frustrating to navigate and sometimes will not lead to a quick return. As such, when considering whether to begin such a difficult undertaking, it is immensely important to clarify some of the ideas surrounding starting a business.

Responding to liquidation

Ultimate Guide to Liquidation Part 3: Responding to liquidation

Estimated reading time: 32 minutes

Sometimes, no matter what a director has done to try and avoid a liquidation, it will loom on the horizon as the only option when a business is no longer viable. There is nothing left to do but to get out of the building before it sinks into an oozing puddle. But in that situation, directors still need to know: what things should they take on the way out or avoid doing?

Preparing for Liquidation

The Ultimate Guide to Liquidation Part 2: Preparing for Liquidation

Estimated reading time: 44 minutes

The terms ‘liquidation’ and ‘winding up’, just like the terms ‘bankruptcy’, ‘tax office’ and ‘new season of Married at First Sight’, carry a degree of anxiety. But they shouldn’t. Liquidation, or the ‘winding up’ of a company, can happen for many different reasons: it does not necessarily mean that the business is broken beyond repair.

What is Liquidation?

Ultimate Guide to Liquidation Part 1: What is Liquidation?

Estimated reading time: 33 minutes

It has been evident for a long time that Australia’s ‘one-size-fits-all’ liquidation model is inappropriate for SMEs. This inadequacy has become particularly evident in the wake of the COVID-19 related economic turbulence.