For Businesses Owners & Company Directors
Facing insolvency or bankruptcy can be daunting, but understanding your options and knowing how to navigate these challenges is crucial.
Insolvency is tough, but it's not the end. With the right guidance and a proactive approach, you can navigate through this and emerge stronger.
“ If you’ve done it once you can do it again”
- The Divinyls
At TTJ Advisory, we offer a comprehensive range of insolvency services tailored to support companies facing financial challenges and their creditors.
How we can help business owners and company directors.
Here are some common factors that can lead to business insolvency:
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Poor Cash Flow Management
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High Levels of Debt
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Reduced Demand
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Operational Inefficiencies
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Economic Conditions
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Regulatory Changes
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Management Issues
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Supply Chain Disruptions.
Business owners and company directors should stay vigilant for signs of insolvency, as early detection and professional intervention can prevent further financial decline.
If your business, or a client’s business, is under financial strain, it's crucial to act swiftly and explore available options.
How Can TTJ Advisory help you?
At TTJ Advisory, we offer a comprehensive range of insolvency services tailored to support companies facing financial challenges and their creditors.
Find out more about each of our insolvency solutions below.
What does insolvency mean:
Insolvency occurs when an individual or an entity like a company is unable to meet their debt obligations as they become due.
There are two forms of insolvency:
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Personal, which pertains to individuals,
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Corporate, which pertains to businesses.
Each form is governed by its own set of laws, rules, and regulations.
A business might become insolvent for various reasons, often due to a combination of internal challenges and external pressures.
Browse TTJ's
Tools & Resources
Small Business Restructuring can help your clients slash debts by up to 80%, unlock tax relief and future-proof their businesses. This eBook offers a step-by-step guide to SBR.
SBR eBook for Accountants
Director Penalty Notices (DPNs) can have serious financial consequences, holding directors personally liable for unpaid company tax debts. This eBook explains how to respond, and strategies to protect your assets.
DPN eBook for Directors
Our Myths & Facts bankruptcy guide serves as your compass, helping to steer clear of common misunderstandings and chart a course towards financial recovery.
Bankruptcy
Myth-buster
Insolvency is tough, but it's not the end. With the right guidance and a proactive approach, you can navigate through this and emerge stronger.
Insolvency
Fact-checker
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Frequently Asked Questions
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What if the company can’t pay debts to creditors?In this case, you may need a Voluntary Administrator (VA) or a Small Business Restructuring (SBR) practitioner. TTJ Advisory can help by: Identifying tax debts tied to director penalties, Negotiating with creditors for debt compromises, Generating working capital through restructuring to address outstanding debts, and Sourcing funding through future profits, personal contributions, or third-party funds. This proactive approach gives you a structured plan to manage debts while preserving the company's ability to operate.
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Is liquidation necessary if i can’t pay the debts?In cases where there is no chance of recovery, commencing liquidation will stop the clock on the DPN and help directors avoid personal liability under certain circumstances. Our in house liquidator will assist you through the process.
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I have been issued a lockdown DPN - what do I do next?Lockdown Director Penalty Notices (DPNs) are issued to directors when a company fails to submit its business activity statements (BAS), instalment activity statements, or superannuation guarantee statements within three months of the due date. Once a lockdown DPN is issued, the penalty becomes fixed, meaning the director is personally liable for the unpaid debt. This liability cannot be removed or cancelled through any other means except by paying off the debt in full. Placing the company into voluntary administration or liquidation will not extinguish this personal liability.
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What are your options once you receive a lockdown DPN?Pay the Debt in Full: The most direct and essential option is to pay off the company’s tax debt in full. This is the only way to clear the liability imposed by a Lockdown DPN. Personal Insolvency Agreement (PIA): This is a legally binding agreement where the director makes a proposal to creditors (such as the ATO) to settle the debts over time or partially. A PIA allows the director to avoid bankruptcy, but it requires the appointment of a bankruptcy trustee to manage the agreement. The trustee will take control of the director's assets and administer the terms of the agreement, including negotiating with creditors. Bankruptcy: If the director is unable to pay the debt or arrange a PIA, declaring bankruptcy may be the final option. In this case, a bankruptcy trustee is appointed to manage the director’s assets and debts. The trustee will oversee the liquidation of assets to pay off the debts and handle communications with creditors, including the ATO.
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How are creditor payments prioritised in liquidation?Payments follow a set order, prioritising employee entitlements and secured creditors before other unsecured debts. Unsecured creditors can file claims and receive distributions based on available funds and the priority order.
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