Business & Insolvency

What is Corporate Insolvency and Bankruptcy?

Insolvency is the stage when a person or company is unable to pay the money owed, on time. When it concerns a person, it’s called personal insolvency whereas when it’s a company, it’s called corporate insolvency. The two kinds of insolvency are cash flow insolvency and balance sheet insolvency. When a person or company has enough assets to pay what is owed but lack the liquid assets to pay a debt when it falls due, such a case is a state of cash flow insolvency. Such cases are usually resolved by negotiation till the time when liquidation is possible. A state of balance sheet insolvency is when a person or company does not have enough assets to pay all their debts. In such a case, the only way out is to declare bankruptcy.

In circumstances when liquidation or bankruptcy is unavoidable, our legal team will assist you with all the formalities required with the same. It’s always better to call on our talented team of Corporate Insolvency Lawyers in Perth who have ample experience in dealing with similar cases.

The Best Bankruptcy Lawyers in Perth make up our strong legal team who will assist you through all the legal procedures step by step. We adopt an all encompassing strategy for most of our corporate insolvency and bankruptcy cases. The following aspects are taken into consideration:

• Assessment of the business objectives as well as individual needs.
• Follow due procedure for mediation  and negotiation.
• Ensure there is sufficient time for actualizing the liquidation procedure.
• Negotiation with third party agents who are eager to loan when banks are not.
• Ensure the sustainability of the individual or the company that is experiencing a tough time financially.
• Mediate with the lender for easy installment processes and more time to defeat insolvency.

For more information on how to deal with corporate insolvency and bankruptcy, please get in touch with our highly qualified team of Australian business lawyers.