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Voluntary Administration Brisbane

Voluntary Administration takes the pressure off so you can step back and breathe

Company Liquidation

Protect Your Company's Future and Initiate a Voluntary Administration

There are many reasons why a company can fall into financial hardship. These can include incurring a bad debt, losing a major customer, getting behind on tax or super, or a director’s personal circumstances hindering their ability to properly run their company. Any of these can lead to a company being unable to pay its debts as they fall due. In this case, the company may be insolvent. Voluntary Administration (VA) is a process available for Australian companies in difficulty to help directors save their business and avoid insolvent trading.

Voluntary Administration gives you a temporary reprieve from your creditors and it may give you enough time to cut debts, reduce costs and allow you to rebuild your company’s profits.

How Does Voluntary Administration Work?

Voluntary Administration is most commonly initiated by a company’s director/s or by a secured creditor. If your business is facing financial hardship, VA effectively presses the pause button on proceedings and unsecured creditors are temporarily unable to enforce claims against you. This pause gives you enough breathing space to identify a route to recovery.

The Administrator appointed to your company will take control of your business and oversee any restructuring process. They will meet with your creditors to explain the situation, help you to prepare a Deed of Company Arrangement (DOCA) and investigate the affairs of your company. The Administrator will work with you and assess whether or not a successful VA is possible.

When Should You Initiate a Voluntary Administration on Your Business?

There can be a lot of concern and delay about initiating the VA process. Unfortunately, delays can mean that by the time you do seek professional help, you’ve left it too late for VA to save your company and Liquidation becomes inevitable.

You should initiate the VA process if your company:

  • Continues trading losses,
  • Has a legal battle turn sour,
  • Your finance application is refused,
  • You have a bad debt or you lose a major customer or project,
  • Have difficulty paying suppliers, tax or superannuation,
  • The Australian Taxation Office (ATO) refuses a payment arrangement, or
  • There’s a dispute between the directors or shareholders.

Three Outcomes of Voluntary Administration

Accept the DOCA Proposal

A DOCA is designed to state the company’s intentions moving forward.

End the Voluntary Administration Process

Your company will be returned to your control.

Wind Up the Company and Appoint a Liquidator

Your company will enter liquidation and generally, the Administrator becomes the Liquidator.

Benefits of Voluntary Administration in Brisbane

Sometimes a company can’t be saved. In this case, VA aims to provide a better return to your company’s creditors then immediately entering Liquidation. Some benefits of entering VA include:

  • Unsecured creditors can no longer enforce their claims against your company without the Administrator or court’s permission,
  • Property cannot be recovered by owners or landlords,
  • Secured creditors cannot enforce charge over company property,
  • The company cannot be put into Liquidation, and
  • Creditors holding a personal guarantee cannot enforce it without court approval.

Find Relief From Company Debts Through Voluntary Administration

If your business is in trouble, we provide tailored advice and clear guidance so you can make confidence decisions about the future of your company. At Revive Financial, we will support you through the Voluntary Administration process in Brisbane.

Our team has over 43 years of combined experience in the financial industry and consists of Chartered Accountants, Registered Liquidators, Bankruptcy Trustees, Turnaround Specialists and Financial Advisors. We have been helping businesses in the national transport industry in Queensland and a number of other Brisbane-based companies through the Voluntary Administration process for over ten years.

Is Voluntary Administration the Right Solution for Your Business?

Get in touch with our Sunshine Coast team today for a free 30-minute consultation to find out if Voluntary Administration is the right option for you. Call us today on 1800 861 247.

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