Fixed Price Liquidation Package
At Insolvency Solutions Group, we aim to provide a low cost low hassle company liquidation service. We sometimes speak to directors that are concerned about a liquidator’s fees using up all of the assets of the company so that priority creditors and other creditors receive no distribution from the liquidator.
At Insolvency Solutions Group, we are happy to provide a fixed quote to cover the standard aspects of a company liquidation where possible.
What we need to do is establish:
- What assets the company has and where they are located;
- The number of creditors;
- Any issues likely to complicate the liquidation.
If we can establish these things then we will provide a fixed quote for the liquidation. That fixed fee will apply as long as the
situation is as explained to us. Any unexpected matters that arise will be charged for separately and, as with the fixed fee, is
always subject to the approval of creditors.
So if you are in this situation why not call us now on 1300 095 750 so we can discuss the specific situation of your
company and see if we can agree a specific fixed fee.
Why bother to liquidate the company at all?
Sometimes a company will be in the situation where it has ceased to trade and has no assets and we are asked by a director whether they should bother to liquidate the company. After all, it is an option for the director to do nothing and let a creditor pay to have the Court order the winding-up of the company rather than the director paying for a Creditors Voluntary Liquidation.
Directors should consider the following reasons to liquidate a company:
- Problems with the ATO – A director runs the risk that the ATO will one day serve a Director Penalty Notice on them which can make the directors personally liable for the company’s debt to the ATO. If a director abandons the company but doesn’t liquidate the company then there is a significant risk that Legal Notices and the Director Penalty Notice will not be received by a director – the unfortunate effect is that the director becomes personally liable for the ATO debt.
- Problems with other creditors – When a company simply ceases to trade and there are outstanding creditors, then those creditors will continue to pursue the company for payment. Sometimes that will be by way of Legal Notices and sometimes a continual stream of irate phone calls from creditors. The only effective way to stop the hassles is to put the company into liquidation and thereafter creditors are dealt with by the liquidator, not the directors.
If you are being hassled by creditors or are concerned about receiving a Directors Penalty Notice then you should initiate the liquidation of the company through a low cost Creditors Voluntary Liquidation.
Director Penalty Notice
Have you received a Director Penalty Notice? As a director, one of the most important notices you need to be wary of is a Director Penalty Notice which is issued by the Australian Taxation Office under the Tax Act. If you get a Directors Penalty Notice you must act immediately to avoid personal liability.
The ATO has the power to collect outstanding deducted taxes by making directors liable for a ‘penalty’ for the same amount as the unpaid tax. These provisions create a liability to the ATO in the name of the director. Each director of a company becomes separately liable for the full amount of the penalty.
Depending on the type of tax a Director Penalty Notice might give the directors an opportunity to take one of four specific actions within 21 days of issue to avoid being personally liable for the debt:
- Pay the debt in full;
- Enter into an instalment arrangement to repay the debt;
- Appoint a Voluntary Administrator; or
- Appoint a Liquidator.
So what should you do? Act immediately!
If the company is solvent, it should pay the tax. Directors of companies that cannot pay the tax usually decide to appoint a liquidator by way of Creditors Voluntary Liquidation, or appoint a Voluntary Administrator. If you are close to the 21 days expiring, you’ll be pleased to know that we are able to organise the appointment of a liquidator within a couple of hours.
How does Insolvency Solutions Group keep its fees so low?
By focusing on a single, highly specialised service area, we are able to bring to bear our experience and professional judgment to develop highly streamlined systems and a timely service. Also, unlike other Registered Liquidators, we do not seek appointment to large or complicated assignments. Hence we are geared for smaller companies and so we don’t have any expensive overheads.
If you are wondering how low our fees are, why not call us now for an obligation free quote and compare.