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FAQs

Our Frequently Asked Questions are answered by a licensed insolvency practitioner. We believe there are always solutions to any problem and we are here to help you.

 


 

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FAQs

What is insolvent trading and should I worry about it?

Insolvent trading occurs when a company incurs debts when there are reasonable grounds to suspect that the company will not be able to pay its debts as and when they fall due. The directors of the company may be held personally liable for any unpa...

01/05/17 by James Imray

Can I be personally liable for company debts to the Australian Taxation Office?

Yes.  A notice issued by the Australian Taxation Office (ATO) may automatically make the directors personally liable for the tax debts owed by the company.  Once issued the only way to avoid personal liability is to have the company wound up (l...

01/05/17 by James Imray

What is the effect of an ATO Garnishee Notice?

An ATO Garnishee Notice is a notice which the ATO may issue to a party that owes money to a company. The effect of this notice is that the party must pay the amount owed to the ATO instead of to the company. This can have a devastating effect on t...

01/05/17 by James Imray

What is the cost of meeting with Rodgers Reidy?

We do not charge for initial telephone conversations or meetings to discuss your circumstances and options. Charges only commence once an appointment is proceeding. A schedule of our charges is available upon request.

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01/05/17 by James Imray

What will happen if I appoint Rodgers Reidy?

Rodgers Reidy will promptly take control of the assets of the company. If the company is operating a business, its operations will be swiftly assessed and a decision made as to whether the business will continue to trade. The trading of any busine...

01/05/17 by James Imray

How long will it take to appoint Rodgers Reidy?

Once a decision to appoint has been made, most appointments can be initiated within an hour. This is subject to Rodgers Reidy being satisfied that it should consent to the appointment.

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01/05/17 by James Imray

Will I lose my house, car or other assets?

The role of a director brings about responsibilities and possible personal claims by parties who have dealt with the company. A claim for insolvent trading is against the directors of a company personally, which puts personal assets at risk. If yo...

01/05/17 by James Imray

Could I go to jail?

Unless you have committed a criminal offence in the operation of the business you will not go to jail. A severe case of insolvent trading may be a criminal offence, accordingly you should seek assistance as soon as there is any reason to suspect t...

01/05/17 by James Imray

What should I do if my business cannot pay its creditors when due (including ATO tax, PAYG and superannuation)?

If your company cannot pay its debts (including ATO tax, PAYG and superannuation debts) as and when they fall due you should meet with Rodgers Reidy to discuss your options. Failure to take immediate action could result in your personal liability ...

01/05/17 by James Imray

Should I wait to see if my financial situation improves before seeking assistance?

No. The sooner action is taken the more likely a positive result will be able to be achieved. If creditors are not able to be paid within terms they are more likely to be supportive if a decision to deal with the financial situation is taken as ea...

01/05/17 by James Imray

My financial situation is not that bad, do I need to do anything now?

Yes. Having spoken with Rodgers Reidy you are not obligated to take any immediate action, however, you will be much better informed of your options and the likely costs and risks of those options.

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01/05/17 by James Imray
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