Ezy Debt Solutions
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What is Voluntary Administration ?
There are many factors you need to take into consideration before deciding to enter Voluntary Administration.
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Effects on personal guarantees
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Payments to Creditors
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What will happen to the staff and their wages
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Tax liabilities
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Superannuation
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Holiday and long service leave
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Loan accounts
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Working capital for the business
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How your customers will take the news
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Reaction of the bank or your secured creditors
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Effects on the directors personally
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Effects on personal / family life
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Choosing the right administrator
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Liquidation – vs – Voluntary Administration
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Effects on Company Directors.
Voluntary administration is an alternative to placing your company into Liquidation.
Liquidation means you shut the doors and all the assets of the business are sold in a fire sale usually to your opposition and the company and business closes for good.
Voluntary Administration is an alternative to Liquidation that allows a short period of time to propose a deed of company arrangement (DOCA). This period of grace is given so you can negotiate with your creditors whereby you propose a compromise to pay what you owe them over a longer period of time and usually a lower dollar amount.
This process aims to get your company back on its feet, and continue trading and protect the goodwill and jobs of your employees, successfully.
The Voluntary Administrator assumes liability for the company during the time they are in control. If you are successful to provide enough working capital to trade the business and are successful in your creditors voting in favour of your DOCA proposal, the company is handed back to the Director and the business will survive.
Strict conditions are usually placed on the Company during the DOCA period to ensure debt levels don’t rise and your liabilities are being met as and when they fall due
What is the effect of voluntary administration?
Once voluntary administration is entered by the company, this will generally prevent the company being sued by its creditors, which is called ‘the statutory moratorium.’ During the voluntary administration any personal guarantees by the director of the company are also deemed unenforceable. This moratorium on claims against the company allows the company breathing space, so it can be evaluated whether it should be wound up or rescued.
EZY Debt Solutions caring specialists are here to assist and prepare you for the Voluntary Administration process. There is a lot of uncertainty leading up to the Voluntary Administration however having our support combined with the right advice will ensure correct decisions are made at critical times.
We are the best choice for Voluntary Administration & Insolvency Solutions.
Are you a director of a company?
Is your business struggling with mounting debts?
Do you need solutions to save your company?
Has a winding up application been served yet?
EZY Debt Solutions have the expertise in providing comprehensive advice, good Intelligence and assistance in all Voluntary Administration matters.
If your enterprise is under the immense pressure of mounting debts and you are worried about the future of your company, voluntary administration may be an option for you.
We assist companies large and small across Australia. Our EZY Debt Solutions advisers are able to commute anywhere of Australia to provide suitable financial remedial solutions for you, in order that the best possible advice can be tailored to your particular situation.
Voluntary administration is an optional process that allows companies in financial distress much needed reprieve and a fresh start with a strong potential to save the company and allow it to continue to trade successfully.
In Australia the insolvent trading laws are the strictest in the world and the penalties for insolvent trading are quite severe.
If you are a director and are unsure whether your company may potentially be trading insolvent, to avoid breaching your duty of insolvent trading you need to act now!
Going into voluntary administration may be a defence to insolvent trading depending on the circumstances.
Therefore, doing nothing and hoping you can trade out of your current financial situation is not worth the risk, call our EZY Debt Solutions today on 0404158976 to make your first step towards a debt and stress free future.
With 45 years of collective experience, you can be assured knowing that our experts at EZY Debt Solutions can give you careful considered advice on what is truly in the best interests of protecting you and your company. Through our no obligation, free consultation, we can gain a holistic picture of your circumstances and recommend what actions you need to take next.
Should you decide that you need to go into voluntary administration, we can make this process stress free and as easy as possible. We have a panel of advisors, lawyers and Insolvency practitioners at our disposal.
The biggest fear is of the unknown and of the steps and process of what will happen next. We understand your circumstances and provide practical and emotional support during this period of your company’s time of need.
Stop Worrying.
EZY Debt Solution's are able to be the life support you need in your dire times of financial crisis and Insolvency.