Best Restructuring & Insolvency Lawyers in Burwood
Share your needs with us, get contacted by law firms.
Free. Takes 2 min.
List of the best lawyers in Burwood, Australia
We haven't listed any Restructuring & Insolvency lawyers in Burwood, Australia yet...
But you can share your requirements with us, and we will help you find the right lawyer for your needs in Burwood
Find a Lawyer in BurwoodAbout Restructuring & Insolvency Law in Burwood, Australia
Restructuring and insolvency law in Burwood, Australia involves the legal processes and regulations that govern financially distressed businesses or individuals. These laws set out the methods for managing company debts, negotiating with creditors, and the steps to take when insolvency is unavoidable. The primary aim is to help businesses or individuals either regain financial stability through restructuring or to provide a fair process for winding up affairs and distributing assets when insolvency cannot be avoided. Burwood, located in the Greater Sydney region, is subject to the national laws of Australia, including the Corporations Act 2001 (Cth) for companies and the Bankruptcy Act 1966 (Cth) for individuals.
Why You May Need a Lawyer
There are many situations where obtaining legal advice in restructuring and insolvency is crucial. Common scenarios include:
- Facing mounting personal or business debts with no apparent way to pay them
- Receiving demands from creditors or insolvency notices
- Being subject to a statutory demand or bankruptcy notice
- Wishing to negotiate with creditors for more time or alternative payment plans
- Wanting to restructure your business to avoid insolvency
- Concerned about personal liability as a director or business owner
- Needing to understand legal duties during financial distress
- Managing employee claims or entitlements during restructuring or liquidation
- Disputes regarding the distribution of assets in insolvency proceedings
A lawyer can help you navigate complex legal requirements, protect your interests, explain your options, and represent you in negotiations or court proceedings.
Local Laws Overview
Restructuring and insolvency proceedings in Burwood fall under the same federal laws as the rest of Australia. The key legislation includes:
- Corporations Act 2001 (Cth): Governs company insolvency, including voluntary administration, liquidation, and receivership.
- Bankruptcy Act 1966 (Cth): Applies to personal insolvency, including bankruptcies and personal insolvency agreements.
- Australian Securities and Investments Commission (ASIC): Regulates corporate conduct and administers insolvency processes.
- Austrian Financial Security Authority (AFSA): Oversees personal insolvency matters such as bankruptcy and debt agreements.
Insolvency proceedings typically involve voluntary or court-imposed actions. Voluntary administration allows a company in financial distress to appoint an administrator to try and save the business. Liquidation involves winding up a company and distributing its assets to creditors. For individuals, bankruptcy can be declared voluntarily or by a creditor through court action.
Directors have a legal duty to prevent insolvent trading and may be personally liable if they breach this duty. Strict timelines and procedures apply, making early intervention and legal advice essential.
Frequently Asked Questions
What is the difference between restructuring and insolvency?
Restructuring refers to changes made to the financial or operational structure of a business to improve its financial health and avoid insolvency. Insolvency occurs when an individual or company cannot pay its debts as they fall due.
How do I know if my business is insolvent?
Your business may be insolvent if it cannot pay its debts on time, is unable to obtain finance, or frequently defaults on payments. Warning signs include ongoing losses, cash flow problems, and pressure from creditors.
What options are available for a company facing insolvency?
Options include voluntary administration, which allows an administrator to attempt to save the business, liquidation, which involves winding up the company, or restructuring through a deed of company arrangement or negotiation with creditors.
What happens to employees in insolvency or restructuring?
Employees may be entitled to unpaid wages, leave, and redundancy payments. In liquidation, employees are given priority in claims over most other unsecured creditors, but may not receive their full entitlements if there are insufficient assets.
Can individuals declare bankruptcy voluntarily?
Yes. Individuals can voluntarily file for bankruptcy if they cannot pay their debts. This process is managed by the Australian Financial Security Authority and has significant legal and financial consequences.
What are my obligations as a company director during financial distress?
Directors must ensure they do not trade while insolvent and should seek professional advice as soon as financial trouble arises. Personal liability may result from failing to act appropriately.
Will I lose my home if I go bankrupt?
Bankruptcy can result in the sale of personal assets, including your home, to pay creditors. Exemptions exist, but it is important to seek legal advice to understand your specific situation.
How can I negotiate with creditors?
Negotiation can involve informal agreements, formal debt agreements, or arrangements through a voluntary administrator or insolvency practitioner. Legal assistance can be crucial in these negotiations.
What is a statutory demand?
A statutory demand is a formal request from a creditor for payment of a debt. Failure to comply can be used as evidence of insolvency and may lead to winding-up proceedings against the company.
Where are restructuring and insolvency matters heard in Burwood?
Most restructuring and insolvency matters are handled by federal courts, such as the Federal Court of Australia or the Federal Circuit and Family Court of Australia. Local courts may become involved in specific insolvency-related claims or proceedings.
Additional Resources
The following resources can provide information and support if you are dealing with restructuring or insolvency issues in Burwood:
- Australian Securities and Investments Commission (ASIC) - Information for companies and directors
- Australian Financial Security Authority (AFSA) - Guidance on personal insolvency and bankruptcy
- Insolvency and Trustee Service Australia - Educational resources on insolvency procedures
- Financial Counselling Australia - Free financial counselling for individuals facing debt
- Law Society of New South Wales - Find accredited legal professionals in Burwood
- Local community legal centres - Often provide free legal advice and support
Next Steps
If you believe you are facing financial distress or potential insolvency, it is important to act quickly. Begin by gathering all relevant financial documents, reviewing your debts and assets, and assessing your ability to pay outstanding liabilities. Seek professional legal advice from a lawyer who specialises in restructuring and insolvency to fully explore your options and obligations. A lawyer can help you develop a strategy, represent you in negotiations, and ensure you meet all legal requirements. Taking timely action is crucial to protecting your interests, minimising losses, and possibly preserving your business or personal assets.
Disclaimer:
The information provided on this page is for general informational purposes only and does not constitute legal advice. While we strive to ensure the accuracy and relevance of the content, legal information may change over time, and interpretations of the law can vary. You should always consult with a qualified legal professional for advice specific to your situation. We disclaim all liability for actions taken or not taken based on the content of this page. If you believe any information is incorrect or outdated, please contact us, and we will review and update it where appropriate.