Insolvency & Reconstruction
Insolvency can create uncertainty for all stakeholders. Our specialist team provides stability in uncertain times, offering the commercially-effective advice whatever the situation.
You have given me the chance of a fresh start that I didn’t think I’d ever have again to be honest. You literally changed my life and I’ll never be able to thank you enough. Just wanted to let you know how much I sincerely appreciate all your help and hard work.
The team at Chamberlains made buying a property extremely easy, I never once experienced the stress people talk about during the exchange/settlement periods of their property. Definitely recommend!
The debt recovery team went above and beyond when our business was owed money. Would use again for sure!
We picked the most highly specialised and talented lawyers.
Even with the best of intentions, there may come a time when a business simply can’t afford to keep operating. Accompanying the personal and financial stress of this time is the need to confront what seems like a tsunami of complex legalities.
Chamberlains are experts when it comes to insolvency and reconstruction matters.
Whether you are a business owner, creditor, shareholder or insolvency practitioner, we offer you direct, realistic and practical advice designed to give you a sensible business solution.
Process - what happens next?
Initial case evaluation
After an initial briefing of your matter, we will provide you with a preliminary quote.
We look into all aspects of your matter and suggest the most viable path for you.
The Chamberlains team will work tirelessly to reach the best possible outcome for you.
Restructuring & Asset Protection
Businesses confronting a looming financial crisis and needing help responding to mounting debt obligations, may gain breathing room from a corporate restructure. Chamberlains can guide businesses through the legal options of this ‘warm restart’ including cutting their debt, and aiding recovery, all with a focus on preserving company value and operations.
These processes go hand in hand with hand with protecting valuable business assets from possible future financial setbacks and setting up preventative new legal processes to avoid similar issues in the future. These are sensible exercises, but can be made complex when considering tax laws.
Chamberlains can also provide legal advice necessary to implement a ‘cold restart’ with a business reincarnation. No matter the situation, as experienced lawyers with a commercial mindset, we are well-placed to help create more robust operating set ups.
When a business shows signs of impending financial trouble, it’s best to act fast because when it comes to corporate insolvency, timing is everything. There may be rescue options available but selecting the right tool to enforce recovery needs to be balanced against counter-productive action that may depress the realisable value of assets and close the door on trading.
Specialist advice is critical to shaping the most appropriate outcome, whether that is voluntary administration, informal restructuring or an ultimate liquidation. Business owners may also be wrestling with additional concerns about staff, premises and their own personal liability.
Fortunately, Chamberlains has a leading team of experienced insolvency lawyers who advise insolvency practitioners on a daily basis and can clarify and provide specialist legal advice on how best to relieve financial distress or to overcome any manner of professional issues which may arise in any appointment.
The last thing anyone who is over-indebted needs is to be pushed into a difficult situation and choose an inappropriate solution. Different people struggling with debts have different characteristics; relief and financial rehabilitation needs to be tailored to their specific circumstances.
Chamberlains’ team can vigorously represent bankruptcy trustees in complex matters and can also sensitively develop an appropriate course of action for individuals— including company directors— whether they are dealing with bankruptcy, personal insolvency agreements, compositions and annulments, property disputes, family law proceedings or voidable transactions. We can also chart a route for those administering the estate of someone who was bankrupt at their death, or whose estate becomes insolvent during disposal.
Do you owe people money? Are you being pursued by your creditors?
Our insolvency lawyers are experts in working with individuals who are in financial distress and can help you to achieve an optimal outcome.
Are you a bankruptcy trustee?
Our team are highly skilled in acting for bankruptcy trustees in everything from straight forward administrative and procedural dealings with AFSA to complex court proceedings and public examinations, and have a breadth of expertise.
Director, Shareholder & Creditor Advice
Solvency is not only the ability for a business to pay its debts it’s what keeps the commercial world rotating on its axis.
Solvency is also a common element linking directors, shareholders and creditors. When it’s reduced or absent, the balance tips and one or more parties become weighed down with challenging legal and financial situations.
Whether a director, shareholder or creditor, Chamberlains’ experienced team can put you in the best position to resolve your issues in the most legally prudent and cost-effective way.
Specialist Services – Family Law, Deceased Estates & Bankruptcy
Unlike many other law firms, we work in a non-siloed way, meaning our insolvency experts work hand in hand with our family law and deceased estate experts to provide targeted and efficient advice and representation to you when your bankruptcy matter becomes intermingled with a family law or deceased estate issue.
Whether it is assisting a bankruptcy trustee to resolve an estate’s interest in a family law property pool, or assisting the administrator of a deceased estate to convert the estate to a bankrupt deceased estate, we are perfectly equipped to assist. Day or night, we’re with you.
Related Practice Areas
As part of a full-service firm we can also draw on the legal and industry knowledge of our expert Chamberlains colleagues who represent almost every area of legal practice.
What is bankruptcy?
Bankruptcy is a legal process which declares that a person is unable to pay their debts. It can absolve them of most debts and allow the person to have a fresh start. It can be seen as an exchange of a person’s assets and financial control for legal protection from the person’s creditors.
There are two ways to enter bankruptcy. You can either:
(a) enter voluntary bankruptcy; or
(b) someone you owe money to (a creditor) can make you bankrupt through a court process.
Who manages my bankruptcy?
When you become bankrupt, a trustee is appointed to manage your bankruptcy. This can be either:
(a) the Official Trustee in Bankruptcy of the Australian Financial Security Authority (AFSA); or
(b) you can nominate a registered trustee of your choice.
The trustee’s fees are generally paid out of the funds recovered in the administration of the bankruptcy.
What happens to my assets?
An asset is anything of value that you possess, such as real estate, vehicles, cash or money in a bank account and tools.
During bankruptcy, your trustee may be able to claim and sell some of your assets. The proceeds from the sale of your assets can be used to repay the money that you owe to creditors.
What are my options? Do I have other options aside from bankruptcy?
Bankruptcy is just one formal option available under the Bankruptcy Act to manage your debt. Other formal options include six-month relief and a debt agreement.
A bankruptcy alternative is a Personal Insolvency Agreement (PIA). A PIA involves the appointment of a trustee to take control of your property and make an offer to your creditors. The offer may be to pay part or all of your debts by instalments or a lump sum. Entering a PIA may have a severe impact on you. It may affect your employment, ability to get credit and will appear on a public register permanently.
Additionally, a debt agreement (DA) is available pursuant to Part IX of the Act. It is an agreement between the debtor and his or her creditors to compromise by paying a percentage of the debts owed over a period of time.
You can read our full FAQ here.