The insolvency framework in Australia is ultimately designed to assist individuals, corporate entities, unsecured and secured creditors to bring finality to insurmountable debt positions. It is by no means a perfect system and should be carefully navigated.
Receipt of comprehensive, independent and written advice on how to correctly navigate the insolvency framework and evaluate options, in a controlled environment is where the true value of good insolvency advice becomes clear to many company directors.
It is imperative that company directors and individuals seek independent advice prior to entering any form of formal insolvency.
Independent advice should be in writing and in the case of corporate insolvency it should clearly identify the appropriate course of action and considerations for the director personally.
PPSA governs the taking, registering and enforcing of security over all personal property (owned either by corporates or individuals) other than land or buildings. It covers all moveable tangible assets including cars, plant, machinery, crops and shares, and also certain intangible assets such as intellectual property and contractual rights.
Often business owners are not aware of how to fully utilise this aspect of asset protection. In the event of insolvency this system can enable directors or related entities to achieve priority and security over their assets.
If your business has:
These assets or personal property could be at risk in the event of insolvency of either the business or trading partner.