Insolvency Advice

Described by clients as ‘professional, reliable and results driven’, CRS Insolvency Services are highly experienced liquidation and bankruptcy experts, providing insolvency advice for both individuals and businesses Australia-wide.

With over 20 years of experience within reputable insolvency firms both in Australia and internationally, Anthony Warner possess the expertise, knowledge and experience to give you the right insolvency advice.

When dealing with CRS you can feel certain that your economic stability is the team’s primary focus. The team at CRS understands that insolvency is a challenging state of affairs and that there are both advantages and disadvantages to the myriad of options available to a company that is experiencing financial difficulty. Their aim is to help you, not follow their own agenda, so you can rest assured that their insolvency advice will not be biased. If possible, insolvency declarations are avoided, but if you do have to go down that path, CRS will ensure that you are fully equipped with the information you need to make an informed decision.

Individuals facing bankruptcy can also seek advice from CRS. There can be a number of alternative solutions available to help one to avoid bankruptcy, solutions which the CRS team are fully equipped to give advice and assistance with. CRS can also help with bankruptcy advice and administration, be it questions, paperwork or a bankruptcy Trustee that you need.

CRS are confident in their services, promising to deliver value-added solutions and insolvency advice for individuals and businesses across many industry sectors. At CRS we are dedicated to achieving the best possible outcomes for each client, offering personalised insolvency advice, competitive fees and flexible payment arrangements designed to suit each individual situation.

With the first 24-hour insolvency advice line of its kind, available to provide insolvency advice free of charge and with no obligation, be reassured that CRS will go the extra mile to put your best interests first and to provide insolvency advice that can ease your financial distress.

For more information about insolvency, or to find out how CRS can help you out of your financial difficulties, contact 1800 210 073 for free and no-obligation insolvency advice today!

CRS the leading Insolvency Experts in Australia

Looking for an insolvency expert in Australia? Look no further than CRS. Being recognized as insolvency experts for years, the experts at CRS handle both personal insolvency and corporate insolvency. When choosing your insolvency expert to help you make the next step, it is important to consider experience, skills and reputation.

CRS is run by the experts in the industry and headed by Anthony Warner, who was recently interviewed by the ABC about his role in the Rene Rivkin case. His expertise is crucial when administering an insolvency case; his many years of experience ensure that CRS understand what needs to be done. CRS experts are easy to contact through a free consultation number for both personal insolvency and corporate insolvency.

What makes CRS one of the top insolvency specialists in Australia? They are attentive to the situations their clients are facing—insolvency on any level is stressful and CRS insolvency specialists will not push a client into any insolvency solution. Not only this, but they will communicate the difficult and hard-to-navigate processes of insolvency so you fully understand the complexities of your situation and how it will be dealt with.

CRS are trusted all over Australia and are available now to help you with all your insolvency needs. The best insolvency specialists in Australia are just a phone call away. For 24 hour insolvency advice, free of charge, call us at 1800 210 073.

Corporate Insolvency

CRS Insolvency Services are the liquidation and bankruptcy experts of Australia, offering services in personal insolvency and corporate insolvency. Their expertise is invaluable for anyone considering or facing bankruptcy or liquidation.

Corporate insolvency requires acute expertise, something CRS Insolvency Services offers with certainty. Their experienced CEO, Anthony Warner, holds weight in the corporate insolvency and bankruptcy industry, and can assist with any corporate or personal insolvency matter and ensure that it will be handled with care and attention to detail.

CRS Insolvency Services has offices in Sydney, Melbourne, Brisbane, Adelaide, and Perth. Not only do they span the country, but they also offer 24/7 insolvency advice over the phone. When calling CRS Insolvency Services you can be sure of talking to a seasoned expert about any corporate insolvency questions, as well as personal insolvency enquiries.

CRS Insolvency Services declare on their website that “all corporate insolvency advice is offered by our senior partner.” Corporate insolvency is to be taken seriously and should be acted on as quickly as possible so as to not put any personal assets at risk. CRS Insolvency Services will help talk any company through corporate insolvency issues, ensuring that your company is taken care of and is not in danger of damaging loss.

If you think your company needs corporate insolvency advice and would like to talk to a senior expert free of cost, do not hesitate to contact CRS Insolvency Services on 1800 210 073. CRS Insolvency Services is here to help, 24 hours a day, 7 days a week.

What is the Difference between Company Liquidation and Administration?

Many businesses are seeking professional assistance nowadays as they find themselves in financial turmoil. Figures and jargon are thrown at them as they are told their options, but for one who is not familiar with insolvency terminology, this can be overwhelming and may lead to them making the wrong decision. It is increasingly important to understand not only what your options are, but also what they will do to serve the best interests of you and your company.

When a company encounters irreparable financial distress there are essentially two options:

Liquidation
Voluntary Administration

Put simply, liquidation refers to the cessation of a company’s operations and the sale of its assets to pay outstanding debts to creditors. It can be initiated on either voluntary or involuntary terms. In an involuntary situation, a creditor may open a case with the courts when the company fails to pay outstanding debts that exceed $2000. If this proposal is approved, a liquidator is then appointed to the company to ensure the debts are repaid. It often happens that a company will voluntarily apply for liquidation to avoid the stress of court encounters. This is one of the final options a company’s directors should consider, as the company will be de-registered and cease to exist following the completion of the liquidation process.

Voluntary administration, on the other hand, presents a more flexible option for a company when they are insolvent or likely to become insolvent. Unlike liquidation, it provides company directors with the opportunity to restructure the business and/or settle its debts without affecting its ability to trade in the future. An external administrator is appointed to the business and is put in charge of investigating the company’s affairs, reporting to creditors and assisting in determining the most appropriate course of action the company should take to rectify its debts.

The two major differences between liquidation and voluntary administration lay in the level of control held by the company director and the future of the business. Owing to the benefit of allowing companies to resume trading, voluntary administration is regarded as the best option for businesses who are facing insolvency and whose restructuring will prove worthwhile. For companies who have reached a point of no return, liquidation is recommended.

For more information about company liquidation or voluntary administration, or to find out how CRS can help you out of your financial turmoil, contact 1800 210 073 for free and no-obligation advice.

3 Tips to help prevent Bankruptcy

What are the main causes of bankruptcy in Australia? Can we do anything to prevent bankruptcy striking our lives? The most common cause of bankruptcy is unemployment, followed by illness and then family breakdowns. While many of these triggers for bankruptcy are not in your hands, how to prepare yourself for financial hardship and handle the outcomes certainly is.

With unemployment rising in Australia, bankruptcy has become more and more common. There are many consequences involved with bankruptcy—it is not an “easy way out.” It puts your major assets, such as a home or vehicle, at risk of being sold to pay back creditors. It will last for a minimum of three years and if your Trustee files an objection against your discharge from bankruptcy, it could last for up to eight years.

CRS is a company geared toward helping clients to manage personal bankruptcy and as such we are aware of the signs of impending bankruptcy. CRS can help you to make the right decision when considering personal bankruptcy and, if possible, help you to avoid it altogether!

Here are three tips to help keep bankruptcy from sneaking up on you:

1.Manage Your Money

Money management is your first method to help prevent bankruptcy. If you set aside money in savings, keep track of purchases and create a weekly budget and stick to it you should keep on the right track. Stay alert and keep up-to-date with your bills so that they do not become unmanageable.

2.Basics Are Your Best Friend

Create money charts on a weekly basis that document your spending. Allocate a monthly allowance based on income coming in and necessities, such as groceries and mortgage repayments, going out. Your plastic cards are not imaginary, they are very real—if you do not stay on top of them the numbers will rack up whether you like it or not. Use your surplus funds from your budget to pay down your debts as much as possible so that should some unforeseen event occur, you have a buffer to help stave off having to declare bankruptcy.

3.Seek Financial Advice

If you are at a loss with numbers and managing your money, look to the experts for help. CRS are insolvency experts and are here to help you if you are floundering in the money-management side of things. If we cannot help you with any of our current services, we can certainly direct you to the right advisors to help you prepare a budget and fortify your finances.

Remember, bankruptcy is most commonly caused by events and circumstances outside of your control. It could be that the difference between riding out financial hardship and succumbing to bankruptcy lies with the decisions that you make today. If you are concerned that you might be heading toward bankruptcy, or simply want more information about bankruptcy and other insolvency options, call CRS on 1800 210 073.

How are the funds paid out in a company liquidation?

When a company is placed into liquidation, the liquidator has the task of realising the company’s assets and using those funds to pay out the costs of winding up the company. There is an order in which the funds are to be paid out, which is set out in the Corporations Act (Section 556) and is to be strictly followed.

The following costs are to be paid in this order before any ordinary unsecured creditors can receive any funds:

1st – any expenses incurred by the liquidator, including any costs incurred in trading, in obtaining and selling the company’s assets;

2nd – any petitioning creditor’s costs and legal fees (if the company was ordered to be wound up by the Court upon application by a creditor);

3rd- any expenses incurred by a Voluntary Administrator (if the company was placed into Voluntary Administration before being liquidated);

4th- any costs involved in preparing a Report as to Affairs for the company (if the company was wound up by the Court);

5th- any costs incurred whilst preparing a report for the liquidator (if the company was wound up by a resolution of the creditors following a Voluntary Administration);

6th- the costs of any audit (if ASIC so orders it) of the liquidator’s six monthly receipts and payments;

7th- any expenses incurred by the liquidator in winding up the company;

8th- any fees for the services of the liquidator;

9th- any costs incurred by a committee of inspection (if one has been established);

10th- any unpaid employee’s wages and superannuation;

11th – any unpaid personal injury compensation;

12th- any unpaid employee leave of absence payments;

13th- any unpaid redundancy payments to employees;

If, after all of the above have been paid in full, there is not enough money left over to pay 100% of ordinary unsecured creditor claims, then the unsecured creditors will receive a partial dividend on a pro-rata basis.

If you are considering a company liquidation and have concerns about your liabilities being paid in full, call us on 1800 003 883.

We are available 24 hours 7 days a week on for free and confidential advice.

Are there any benefits to voluntarily placing my company into liquidation?

If your company is insolvent, or is likely to become insolvent, the natural inclination is to continue trading in the hope that things will turn around. There are, however, many reasons why making the decision to voluntarily place your company into liquidation is a more beneficial course of action.

The first point to make is that you have an actual obligation to place your company into liquidation if it is insolvent. If you are aware that your company is insolvent, or it is likely to become insolvent in the near future, and you continue to trade and incur debts, you can be investigated and penalised. Civil penalties for trading whilst insolvent can reach $200,000, and are only one of many possible consequences, including becoming personally liable for certain debts.Click here to learn more about the consequences of trading whilst insolvent

Voluntarily placing a company into liquidation can give the director a sense of control over the process. It allows them to appoint a liquidator of their choosing, whereas if a creditor forces the liquidation of the company (through the courts), that choice is taken away from them. Making the choice to liquidate can also significantly reduce the stress associated with running an insolvent company – all creditor contact is placed in the hands of the liquidator and the director can rest assured that the company’s affairs are being wound up in an orderly and professional fashion.

If you have been considering placing your company into voluntary liquidation you should seek professional advice. We can help you to determine if your company is insolvent and discuss the potential benefits of making the decision to wind it up. We are available 24 hours 7 days a week on 1800 003 883for free and confidential advice.

What is the purpose of a liquidation?

The purpose of a liquidationis to ensure that a company is wound up fairly and equitably when it is unable to payits debts as they fall due.If, at any time, a company is unable to pay all of its debts (which are due and payable), the director/s of the company should appoint a liquidator.The liquidator is responsible for dissolving the company’s affairs and distributing the available funds in accordance with the Corporations Act (“the Act”).

Sometimes it turns out that there are insufficient funds available to pay the creditors 100% of their debt; sometimes there is no return to creditors available at all. If there is a partial dividend to be distributed it will be done in accordance with the order set out in the Act.The liquidator must prepare and lodge a confidential report with the Australian Securities and Investments Commission (ASIC) if the dividend return to unsecured creditors is less than 50%. This report will outline the liquidator’s findings into any breaches of duty on the part of the company’s directors.

In addition, the liquidator will investigate the following matters and report their findings to both ASIC and the creditors:

Has the company made any preferential payments to creditors within the six months leading up to the liquidation?
Did the company enter into any uncommercial transactions?
Did the company enter into any unreasonable director related transactions?
Each of the duties and activities carried out by the liquidator are designed to ensure that each creditor of the company is treated as fairly as possible as the company is wound up and dissolved.

If you would like to learn more about a company liquidation call us today on 1800 210 073. We are available 24 hours 7 days a week for free and confidential advice.

How does a company enter liquidation?

There are two ways a company can be placed into liquidation: voluntarily, or involuntarily.

Creditors Voluntary Liquidation (CVL)

Voluntary liquidation occurs when the directors and shareholders make the decision to have the company wound up. If 75% of the shareholders approve of the liquidation the vote will pass and the liquidator gets appointed immediately.

If a company is liquidated voluntarily the directors and shareholders can appoint a liquidator of their own choosing. This is the fastest and most cost-effective method for winding up a company.

Court Liquidation (or Compulsory Winding Up)

A company liquidation is involuntary when it is forced upon it by the company’s creditors. When an application has been made by a creditor to have the company wound up, the directors no longer have the option of doing it voluntarily. They will also be unable to appoint a liquidator of their choosing; as it will be in the hands of the creditor who made the application to court..

For 24/7 advice on voluntarily placing your company into liquidation, call us on 1800 210 073.

Can I become personally liable for company debt?

A Pty Limited or Limited company is essentially an entity unto itself, meaning that any assets or debts belong to the company. However, there are some instances in which a company director can become personally liable for company debts:

1. Personal guarantee
2. Insolvent Trading
3. ATO debt

Personal Guarantee

When you sign a personal guarantee with a creditor or trade supplier, you are promising them that you will personally pay the debt if, for some reason or another, the company is unable to. But more importantly, you are making yourself legally liable for the company debt. Some personal guarantees also include an authorisation to place a caveat on your house, meaning that the creditor is entitled to receive proceeds should you sell your house (after the mortgagee and other selling costs have been paid in full).

If the company does not pay its debts and you have signed a personal guarantee, those creditors holding a personal guarantee will be able to demand payment from you as an individual. They do not have to wait until your company liquidation is complete to demand payment. Thefact that your company has gone into liquidation is a trigger to demand payment under the guarantee. You would be best advised to come to an arrangement with any creditor holding a personal guarantee immediately after your company is placed into liquidation, so that you do not place yourself at risk of legal action being taken against you personally.

Insolvent Trading

A company director can be found guilty of insolvent trading if it can be proven that:

1.the company incurred a debt whilst it was insolvent;
2.the director was aware, or should have been aware, that the company was insolvent at the time; and
3.the director failed to prevent the company from incurring the debt.

If the court finds a company director guilty of incurring debt whilst insolvent, they can become subject to penalties including:

1.Civil penalties – the company director could be ordered by the court to personally pay a penalty of up to $200,000;
2.Compensation proceedings – the company director could become personally liable, by order of the court, for a compensation payment to the value of debts incurred whilst the company was insolvent;
3.Criminal charges – the company director could be referred to the Director of Public Prosecutions and become subject to a criminal prosecution.

ATO Debts

If the company fails to lodge its Business Activity Statements (BAS) with the ATO within 3 months of their due dates, any company directors will become personally liable for any unpaid tax deducted from employee’s wages (PAYG). They will also be liable for any unpaid superannuation contributions.

Note: a company director can not become personally liable for any unpaid GST.

If you are acting as director of a company that is potentially insolvent and/or facing liquidation, you should contact us immediately to get advice on any debts that you may become personally liable for. We are available 24/7 on 1800 003 883.

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