Insolvency

When facing financial struggles in business, it’s crucial to work with a team of experienced lawyers in insolvency matters. At Aubrey Brown Lawyers, our Commercial Lawyers have a long track record of successfully assisting business owners, corporations, creditors and liquidators.

If you're dealing with a financial crisis, it’s important to seek legal advice early. We work with insolvency experts to guide you through the best course of action. If a business partner is facing insolvency (e.g., liquidation), we can help protect your rights as a creditor, including defending against preference claims.

Insolvency occurs when a person or company cannot pay their debts on time. To determine if your company is insolvent, a number of factors are carefully assessed, including:

• Availability of cash reserves when debts are due
• Working capital
• Current and expected cash flow
• Access to reliable funding and the ability to borrow
• Assets that may be sold to cover debts
• The option to extend due dates for debts owing
• The reliability of creditors who have money owing

If you suspect your company is insolvent, it's crucial to seek legal advice immediately, as continuing to operate can result in directors being personally liable for the debts of the company.

If you’re concerned about insolvency or a debtor’s financial situation, contact our Commercial Lawyers now for expert guidance on the next steps.