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Get Support and Form a Plan Under Voluntary Administration

If your business is experiencing financial difficulties and is unable to pay its debts, voluntary administration can give you the breathing space you need to assess your options and form a plan without creditors chasing payment. Where appropriate, you can continue trading.

Voluntary administration is a formal insolvency appointment that means handing over your company’s affairs to an administrator. The process typically takes 25 days (or 30 days if over Christmas or Easter). In some situations, the court can agree to extend this.

You may be wary of voluntary administration, but it actually offers many benefits. It can provide a quick resolution to your struggles, improve your chances of staying in business, and ease the mental strain. It also typically offers a better outcome for creditors than liquidation and can avoid legal action.

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How Voluntary Administration Works

Appointing An Administrator

Once you’ve decided voluntary administration is the best option, you must appoint an independent, registered administrator. They’ll assess your viability, manage your affairs and help you devise a plan.

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Drawing Up A DOCA

Your administrator will help you prepare a deed of company arrangement (DOCA). This is a binding agreement between you and your creditors that sets out how you’ll service debts.

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The Creditor Decision

A meeting with your creditors is called to decide your future. During the meeting, your creditors can vote to give you back control, accept your DOCA, or agree to put your company into liquidation.

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Brian

Voluntary Administration

Company Financial Struggles

Unmanageable Debt

Desire to Assist Employees

Find out how we helped Brian

Our Solution

Deed of Company Arrangement (DOCA)

When Brian contacted us, he was feeling stressed and overwhelmed. He had built the business up over many years and didn’t want it to close. He also felt the responsibility of having to pay wages and didn’t want to let any of his employees down.

We came in to assess the business and determined that it was still viable. As administrators, we then set about communicating with stakeholders, making changes and drawing up a DOCA.

Positive Outcome

Brian Finds Stability

Creditors Accepted The DOCA

The creditors voted by majority to accept the DOCA and received a partial return on their debt.

Employees Kept Their Jobs

The plan meant the debts were to be covered by future profits and selling assets.

A Black Cloud Was Lifted

Brian felt relief in the positive outcome and the mental strain gradually eased.

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At Revive Financial, we care about the stress and impact being in debt has on your wellbeing. We want to help you take back control with no judgement, just a helping hand.

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Revive Financial is proudly Australian owned and lead by a team of Chartered Accountants. Our qualified team have been helping Australians become debt free since 2005.

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Frequently Asked Questions

How Long does Voluntary Administration Last?

The Administrator must submit their report to the creditors 5 weeks from the date of their appointment. For more complicated cases, this timeframe can be extended.

Why Enter Voluntary Administration?

Voluntary Administration provides much-needed breathing room for companies in financial difficulty. During the Voluntary Administration period, your creditors must stop their collection activities. Your administrator will also look at your company structure to see if it can be saved. The Administrator might find the company is heading towards insolvency.

If your company is only in short-term financial trouble, Voluntary Administration is the best solution for you.

How do I Start Voluntary Administration?

To enter Voluntary Administration, the Directors must pass a resolution in a Board meeting. They must then present the vote in writing and appoint an administrator.

How Much does a Voluntary Administration Cost?

Each Administration is different so there is no one answer. The cost of the Voluntary Administration will depend on:

  • the size of the company
  • the complexity of the financial hardship
  • the number and type of creditors
  • the work that needs to be performed.

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How Can We Assist You Today?

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Unsecured Debt Amount

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$1,000
$100,000+

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Business Debt Amount

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