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Voluntary Administration - Cross Roads Insolvency
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Voluntary Administration (VA)

Voluntary Administration is designed by the Corporations Act to provide an insolvent Company with breathing space of between 25 to 30 days whilst the Company and its creditors decide where the Company’s future lies.

VA Can Provide the Company and Its Directors
the Following Benefits:

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Most of the Creditors are precluded from pursuing their debt including the Australian Taxation Office (ATO) and the landlord.

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On the personal front, creditors who hold a director’s personal guarantee cannot enforce it without Court approval.

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It is possible for the Company to continue to trade during the administration period.

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When to use Voluntary Administration?

  • The Company is insolvent, however you believe it still has a viable business worth saving, a comprise may be reached with the creditors to save the Company.
  • The Landlord has issued an ultimatum to lock up the Company’s premises with all its assets inside, placing the Company into Voluntary Administration will stop the Landlord from any further action, allowing time to save or sell the Business as a going concern or sell off its assets.
  • The Creditor has gone as far as issuing the Company with a Statutory Demand and commenced Winding Up proceedings in the Court. Rather than dealing with the Liquidator that appointed by the Court, you wish to appoint an Administrator you are more comfortable with.

What happens at the end of the Voluntary Administration period?

 

Voluntary Administration usually lasts from 25 to 30 days, at the second meeting (major meeting), the Creditors will usually decide on one of the following courses of action that the Company should take:

 

  1. That the administration ceases, returning control of the Company to the Directors if the Company is found viable and a Voluntary Administration is unnecessary;
  2. That the Company is wound up and put into Liquidation;
  3. That the Company enters into a Deed of Company Arrangement; and
  4.  That the meeting be adjourned to a later date.

CrossRoads Insolvency is your Voluntary Administration specialist, and exists to guide you through the process and provide you with all the answers that you may be seeking.

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WHY CHOOSE US

Qualified & Experienced

We are experienced, fully qualified and registered Insolvency Practitioners.

Close Guidance

Our step by step approach reduces your stress to a minimum, making the process as smooth as possible.

Tailored For You

We can tailor a simple, practical solution to sort out the mess to best achieve your desired result.

Are You Issued With One Of These Notices

Have you been issued With One Of These Notices

Are You Issued With One Of These Notices
Director Penalty Notice (DPN)

A Director may be personally liable for outstanding Employees’ PAYG and Superannuation when the ATO issues a Director Penalty Notice.

Statutory Demand

A Creditor can apply to the Court to obtain Order to Wind up the Company if a Statutory Demand has not been responded to within 21 days.

Winding up Notice

Action is required at once if your Company is issued with this Notice, otherwise, this may lead to serious consequences for both the Company and Director.

There Is No Time To Waste

Contact Us Immediately To Find Out what Your Options are

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