Should I wait to see if my financial situation improves before seeking assistance?
No. The sooner action is taken the more likely a positive result will be able to be achieved. If creditors are not able to be paid within terms they are more likely to be supportive if a decision to deal with the financial situation is taken as early as possible and before the company, and the position of its creditors, becomes more severe.
My financial situation is not that bad, do I need to do anything now?
Yes. Having spoken with Financial Distress Solutions, you are not obligated to take any immediate action, however, you will be much better informed of your options and the likely costs and risks of those options.
Can I be personally liable for company debts to the Australian Taxation Office?
Yes. A notice issued by the Australian Taxation Office (ATO) may automatically make the directors personally liable for the tax debts owed by the company. Once issued the only way to avoid personal liability is to have the company wound up (liquidation), an administrator appointed, pay the amount owing or comply with a repayment plan agreed to by ATO within 14 days from the notice being issued. If the repayment plan is not completed, the directors will be automatically personally liable for any shortfall. It is important to understand that the ATO only has to send the notice under Section 222AOE to the director’s personal address as last advised to the Australian Securities and Investments Commission. If the notice is not received or delivery is delayed then directors may become personally liable for the debt before they have any knowledge of the notice. It is therefore imperative that companies seek immediate advice if ever they are unable to meet their obligations to the ATO.
What should I do if my business cannot pay its creditors when due (including ATO tax, PAYG and superannuation)?
If your company cannot pay its debts (including ATO tax, PAYG and superannuation debts) as and when they fall due, you should meet with Financial Distress Solutions to discuss your options. Failure to take immediate action could result in your personal liability for some of these debts. It is important to understand that there are often many options available, including those that allow the company to continue to operate and, with the agreement of creditors avoid liquidation.
What is the cost for a meeting with Financial Distress Solutions?
We do not charge for initial telephone conversations or meetings to discuss your circumstances and options. Charges only commence once an appointment is proceeding. A schedule of our charges is available upon request. Contact us on 1300 747 577 or email admin@financialdistresssolutions.com.au to discuss your options.