Insolvency Lawyers in Melbourne
At Aitken Partners we are proud to be recognised as a leading Melbourne insolvency law firm, working to represent the interests of clients from both the private and business sectors. We advise insolvency practitioners, directors, creditors (both secured and unsecured), and small to medium corporations on all restructuring and insolvency matters.
Our team acts for liquidators, voluntary administrators, and other insolvency professionals and, increasingly, with businesses looking into various restructuring options when faced with financial difficulties and creditors, including the ATO. We also advise on the various issues arising from formal insolvency administration, such as:
- unfair preference claims;
- uncommercial transactions;
- insolvent trading claims;
- other aspects of the investigatory process relating to insolvency administrations; and
- the Personal Property Securities Register.
We have considerable experience in dealing with ASIC and other regulators, including regulatory examinations (pursuant to the Corporations Act 2001, ASIC Act 2001 and the Bankruptcy Act 1966) and court actions.
Our team also has considerable experience in advising on Part X Personal Insolvency Agreements and mortgagee sales of property. We also have experience in the administration of the Bankruptcy Act 1966, which includes acting for the Official Trustee in Bankruptcy, the Inspector General in Bankruptcy, registered trustees as well as persons facing bankruptcy or persons who have become bankrupt. Our experience includes assisting and advising trustees in relation to asset recovery investigations and other matters, and commencing and defending legal proceedings.
Our Insolvency Law and Restructuring Team understands that advice concerning insolvency often requires knowledge and expertise in diverse areas of law including property law, commercial law, tax law and employment law. We have a range of specialists in these various areas which augments our significant expertise in insolvency matters.
Get in touch
To get in touch with our insolvency lawyers, fill out the form below or give us a call: +61 3 8600 6000
Located in Melbourne CBD at Level 28, 140 William Street, Melbourne. Servicing all Melbourne suburbs online and within a 15-minute drive for: Melbourne CBD, Carlton, Fitzroy, Richmond, South Yarra, St Kilda, Brunswick, Collingwood, Prahran, South Melbourne, North Melbourne.
Frequently Asked Questions
A business is insolvent when it cannot pay its debts as and when they fall due. Warning signs can include: cash flow pressure; overdue ATO or superannuation obligations; creditor demands; and dishonoured payments. If you’re unsure, our Insolvency team can assess your position and outline your options.
Liquidation isn’t the only pathway. Depending on your situation, options may include: restructuring; negotiating with creditors; voluntary administration or the small business restructuring process. Early advice from our Insolvency team helps identify the best approach.
Ignoring demands can escalate quickly. Creditors may issue formal demands, commence court action or serve a creditors statutory demand, which can lead to winding up proceedings and the appointment of a liquidator. The ATO may issue a Director Penalty Notice, making directors personally liable for the unpaid tax liability of the company.
Yes. Directors can be personally liable if the company trades while insolvent, if personal guarantees have been given, or if PAYG, GST or superannuation liabilities remain unpaid. Liability can also arise from breaches of directors’ duties or certain transactions which are considered uncommercial or unreasonable.
You should seek advice as soon as signs of financial pressure or distress arise within your business, including cash flow difficulties, adverse creditor action, or concerns about meeting obligations. Early advice is critical to preserving all the restructuring and insolvency options for both the Company and the director(s) . Aitken Partners can provide clear, strategic advice tailored to your circumstances.
If a Pty Ltd company continues to incur debts when it cannot pay them as and when they fall due, its directors may be exposed to personal liability for debts incurred during this period. Under the Corporations Act 2001 (Cth), directors have a duty to prevent insolvent trading. This duty applies even if the company is small, family-owned, or owner-operated (sole-traders are excluded). Directors who ignore the warning signs of a company’s insolvency may face claims for company debts, civil penalties, or other consequences.
Please note: The information in this article is provided for general information purposes only and does not constitute legal advice. It is not intended to be comprehensive or to apply to any specific circumstances. You should seek independent legal advice before acting on any information contained in this article.