Insolvency & Bankruptcy

Helping You Navigate Financial Distress with Clarity

Understanding Insolvency in Australia

Whether you’re facing creditor demands, cash flow problems, or the prospect of closing your business, we’ll guide you through the process with practical, commercial advice tailored to your situation.

When debts become unmanageable, the pressure can feel overwhelming, but the right legal advice can make all the difference. At THAMS Law Group, we help businesses and individuals understand their options, protect their interests, and move forward with a clear strategy.

A business is insolvent when it cannot pay its debts as they fall due. This triggers serious obligations for company directors, including the need to avoid trading while insolvent. Failing to act can lead to personal liability and other penalties.

We help you assess your position, understand the risks, and choose the best path forward — whether that’s restructuring, voluntary administration, liquidation, or receivership.

WHAT WE DO

Our Bankruptcy & Insolvency Services

Bankruptcy for Individuals

Bankruptcy can offer relief from overwhelming debt, but it comes with long-term consequences, such as restrictions on credit and possible loss of assets. We ensure you understand every implication before proceeding, exploring all possible alternatives first.

If bankruptcy is the right option, we’ll guide you through the process from start to finish, including lodging documents, liaising with trustees, and ensuring you meet your obligations.

Voluntary Administration

Voluntary administration allows insolvent businesses to pause creditor action, restructure, and work toward recovery. We advise directors, administrators, and creditors on the process, including negotiating a Deed of Company Arrangement (DOCA) that can preserve the business and protect stakeholder value.

Liquidation

When recovery isn’t viable, liquidation can provide an orderly way to wind up a company and repay creditors. We make the process as clear and manageable as possible, ensuring all legal requirements are met while protecting your interests.

Receivership

Receivership can be complex and high-stakes. We advise both companies and secured creditors, ensuring assets are preserved, rights are protected, and the process is managed efficiently from appointment to resolution.

Practical, Strategic Guidance Through Insolvency and Bankruptcy

At THAMS Law Group, we help businesses and individuals facing financial distress navigate complex insolvency and bankruptcy laws with clarity and confidence.

Our focus is on protecting your interests, minimising risk, and finding the most effective path forward, whether that means restructuring, negotiating with creditors, or winding up in an orderly, compliant way.

FAQs

  • Insolvency refers to the financial state of a business or individual when they are unable to pay their debts as they fall due. Bankruptcy, on the other hand, is a legal process that applies specifically to individuals, allowing them to discharge certain debts and start afresh.

  • A company is considered insolvent if it cannot pay its debts when they are due. Warning signs include cash flow problems, creditor demands, and an inability to secure new finance. If you suspect your company is insolvent, it's crucial to seek legal advice immediately.

  • Voluntary administration is a process that allows insolvent companies to restructure their affairs under the supervision of an external administrator. The aim is to avoid liquidation by developing a Deed of Company Arrangement (DOCA) that allows the company to continue trading.

  • Bankruptcy can provide relief from debt, but it comes with significant consequences, including restrictions on obtaining credit, the potential loss of personal assets, and a lasting impact on your financial reputation. It's essential to fully understand these consequences before proceeding.

  • Yes, with the right legal and financial advice, a business can recover from insolvency. Voluntary administration and restructuring are often used to help companies trade out of financial distress and avoid liquidation.