We’re here to help

Whether you are trading as a sole trader, through a company or a trust—there are options to deal with debt issues.

With extensive experience helping businesses and individuals navigate these difficult times, Worrells is here to help you assess your options, and guide you through the process.

To talk to one of our understanding team members, call us today for a confidential chat.

Over 48 years’ experience dealing with individuals & businesses in financial distress

32 offices spread all around Australia

Plain Talk, Straight Answers & Fast Results

What is liquidation?

Liquidation is the process of winding up a company’s financial affairs.

Typically, a company is placed into liquidation because the company cannot pay all of its debts (i.e. it is insolvent). Liquidation is a formal process to dismantle a company’s affairs and it can also provide relief to those running the company by placing company control into the hands of a third party (a liquidator). The liquidator then deals with the company’s operations and its debts.

When is liquidation the right option?

Many causes can get businesses into financial difficulty. They include poor economic conditions, adverse legal action, ATO debt issues or problems with suppliers.

You may need a helping hand to reach an arrangement with your creditors, or a more formal insolvency process to rehabilitate the business through a small business restructure, a voluntary administration or wind up your business through a liquidation process. As a sole trader, bankruptcy is the formal insolvency for this type of business structure.

Regardless of the type of business or type of debt issues—we can guide you through the process. Call us today on 1300 959 557 for a no-obligation chat.

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Book a free, no-obligation chat now

In our experience, no amount of FAQs and reading will substitute what can be gained by discussing your unique situation with a qualified professional.

Why choose liquidation?

Liquidation is the only way to fully wind up company affairs and end the company’s existence. A liquidator undertakes the process and protects the interests of creditors, directors and members while the company structure is dismantled.

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How can an insolvent company be wound up?

An insolvent company can either be wound up by creditors (and members if appropriate) applying to court, can resolve to wind up the company voluntarily.

 

What is insolvent trading?

Insolvent trading happens when directors incur debts when the company is insolvent. A liquidator can claim for compensation against a director if those debts are unpaid when the liquidation starts. This means directors may be personally liable to compensate creditors for those amounts (unpaid debts incurred from time of insolvency to the liquidation’s start).

Acting early may avoid such claims!

We’re here to help you find the best solution to your debt problems

Whether you are trading as a sole trader, through a company or a trust—there are options available to deal with your debt issues.

We are experts in:

  • Insolvency
  • Small business restructuring
  • Voluntary Administration
  • Turnaround Management
  • Liquidation (Simplified / Standard)
  • Director Penalty Notices
  • Statutory Demands
  • Personal Insolvency Agreements
  • Bankruptcy
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My experience working with Worrells has been nothing short of amazing. I found myself in a hole after some poor decisions in the financial markets led to a large unpaid loan hanging over my head for years. I was extremely stressed out and struggling to pay the interest on this loan while also keeping a roof over my head.

From the moment Worrells answered my call they have made my life a lot easier. I could tell that from the beginning they were empathetic to my situation and that they genuinely wanted to help. We had an open and honest conversation to devise a plan so that I could move forward, debt free.

What really sets Worrells apart is the follow-up work—checking in on how things are going and always happy to answer any questions on the intricacies and legalities of insolvency with an infectious upbeat attitude.”

~ Deklan Gilmartin

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Our promise

Now’s the time to have someone in your corner—an insolvency professional who provides clarity amongst the murkiness of insolvency, stress and indecision.

We are dedicated to helping you at every step of the way to financial freedom, and we are always happy to answer your call

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Don’t live with the financial burden any longer

 

Our specialised consultants can find solutions to all types of debt problems. We can help you consolidate your payments, save thousands in interest and reduce your debt. Your debt problem can be fixed!

 

Call us today on 1300 959 557 or complete the form

FAQs

Your liquidation questions answered:

What is Liquidation?

Liquidation is the process of winding up a company’s financial affairs.

Typically, a company is placed into liquidation because the company cannot pay all of its debts (i.e. it is insolvent). Liquidation is a formal process to dismantle a company’s affairs and it can also provide relief to those running the company by placing company control into the hands of a third party (a liquidator). The liquidator then deals with the company’s operations and its debts.

Can I apply for liquidation voluntarily?

Yes, if you are trading through a company and are the director and shareholder. Call us today to discuss the process.

What if I’m a sole trader?

Liquidation and voluntary administration are for businesses trading through a company structure (incorporated companies and trust structures). If you are trading as a sole trader and have financial issues in the business, then your debts can be dealt with through bankruptcy or other debt solutions mechanism. Go to our or bankruptcy page to learn more.

What happens to my employees if my business is wound up?

Employee entitlements (including wages, superannuation, leave, and termination amounts, etc.) are treated as a priority dividend—as a priority creditor in the insolvency appointment—under the Corporations Act 2001 and Bankruptcy Act 1966 ahead of other types of creditor claims.

The federal government has a scheme to protect some employee entitlements in the event of a company being placed into liquidation—known as the Fair Entitlements Guarantee scheme (FEG). This scheme’s funding assists to satisfy and pay outstanding wages, leave entitlements, and termination amounts (subject to some limits) that employees are owed when the business cannot afford to pay these debts. Call us to find out more.

Can I still trade my business if I am solvent?

Directors must be aware of “insolvent trading” laws that can have substantial penalties or implications. If your business is insolvent, it is best to touch base with Worrells to discuss what can be done legally to save your business and to understand what your rights and obligations are.

What about the new simplified liquidation process?

Should the company meet certain eligibility criteria, the liquidator may adopt the simplified liquidation process rather than the existing approach.
The criteria are:

  • the company has passed, a special resolution that the company be wound up voluntarily;
  • the directors give the liquidator a report concerning the company’s affairs and a declaration that the company will be eligible for the simplified liquidation process;
  • the company is insolvent;
  • the company’s total liabilities do not exceed $1 million;
  • no director has been a director of a company that has previously used the simplified liquidation process or a debt restructuring process; and
    the company’s tax lodgments are up to date.

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