An insolvent business is one that is unable to pay all its debts when they are due. If you suspect your business is in financial difficulty, get proper accounting and legal advice as early as possible.
There are different types of insolvency administrations, including:
- administrator appointed (voluntary administration)
- receivership
- liquidation
- mortgagee in possession.
The action taken against an insolvent business will differ depending on the nature of the insolvency administration. An insolvency practitioner can conduct a solvency review of your business and outline available options.
If you are operating a business as an individual and you become bankrupt, this will impact your business.
About the Author
Warren Kruger is an Australian Tax Specialist and Advisor.
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Warren Kruger is an Australian Tax Specialist and Advisor. For a FREE Report “7 Essential Strategies to Reduce Your Taxation NOW!”,enter your name and email address in the Opt In Box located on the top right hand side of this article.
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