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Jansen Walsh & Grace

Radical change to allow companies get out of insolvency
The federal Treasurer has announced that he will introduce legislation to a new debt restructuring process for companies with liabilities of less than $1 million.  This will involve moving from the current rigid one-size-fits-all “creditor in possession” model to a more flexible “debtor in possession” model which will allow eligible small businesses to restructure their existing debts while remaining in control of their business.  There will be a rapid 20 business day period for the development of a restructuring plan by a small business restructuring practitioner, followed by fifteen business days for creditors to vote on the plan.  There will also be a new, simplified liquidation pathway for small businesses to allow faster and lower cost liquidation.

Asset protection
If you are worried about your building or property development failing or your business going under, we may be able to help you to either to restructure your business or refinance your loan.  We are here to advise on the right steps to take at the right time.

Hungry Jacks founder Jack Cowin said an equivalent of US laws, giving businesses a “second chance” was needed.  “If you look at the impact of someone going into business in Australia (then failing), here it affects your wife, your kids.”

Acting for debtors
If you are struggling to pay personal, as opposed to business debts, then bankruptcy could be imminent.  The process can be started by a creditor, or by you. Either way, it is important that you protect assets, including your family’s interest in your matrimonial home.  We are here to advise on the right steps to take at the right time.

Arrangements without bankruptcy
If you are unable to pay all of your personal debts, but could afford to pay some, an arrangement with creditors could be right for you. We could help you negotiate payments to your creditors, releasing you from liability to pay any more and stalling or eliminating the risk of bankruptcy.

Financial agreements under the Family Law Act
Under the Bankruptcy Act 1966, the Family Court of Australia has bankruptcy jurisdiction when a trustee applies to have a financial agreement set aside under the Family Law Act.