Use our advice to rescue your business and to preserve your assets and self-protect.
Should I fight insolvency or find another way?
This is one of the most important questions you will ever ask yourself. When you are faced with ATO debt or when creditors seem to want blood or legal claims threaten your company, you must fight smart not just fight hard and certainly not just hope something will turn up. Smart tactics and good strategic decisions will help you survive and prosper.
Sometimes a fight-back or fight-on response just drains your resources and energy. The consequences of spending more time and money paying creditors like the ATO or fighting legal claims in the current company structure are serious if your company doesn’t survive. Not only that, unless you know all your options, including understanding what a Planned Business Liquidation Restructure can do for you, you may be ignoring a golden opportunity to build a better base without all the risk and effort.
There are several things to consider
By trading on am I risking personal liability?
There are two main risks. The first is getting a penalty notice from the ATO which makes you automatically liable for unpaid PAYG and possibly superannuation. (for more information go to our Information Sheet – I have a Directors Penalty Notice, what should I do?) If you are behind on BAS then realise that the ATO has been told to toughen up on company directors. You may also receive a notice and/or get a letter from a collection agency for ATO debts (the ATO seem to be using Dunn and Bradstreet a lot lately). The second is when the company incurs debts when there are indications it was unlikely to be able to pay them (insolvent trading). A liquidator of your company is required to sue you personally for such debts (for more information go to our Information Sheet –
If you are paying the company bills…
and funding the company with your own money or incurring debt on the company’s behalf, maybe using your credit card to pay ATO debt instalments? Then stop immediately and give us a call. This is so common and so tempting but if the company is in trouble you need to fight smarter, you know it is possibly good money at risk. We can show you how to fund with protection; how to do it properly, with adequate security. That’s right, if you lend money to the company or pay its creditors, especially if it is facing financial challenges, you are entitled to demand more in terms of security and consideration than when you first capitalised the company. Get someone to check how to do this legally. Fight right, if you are going to fight. This can have other benefits which few people are aware of such as extinguishing director loans and/or giving you a priority in receiving dividends and even ultimate control of a liquidation – if it is done correctly. Most directors and owners miss this opportunity. Even if you have already lent or paid bills without advice, there is still time to get those benefits. Ask us.
Are you too close, too connected to the business…
Are you too close to see the real risk to you and your family because you are fighting the ATO or the legal claims so hard? The company is your reputation and if you can’t keep it alive, that means you are a failure. Right?… Wrong. Yes, you may have conceived the business, built it up, put your heart and soul into it. We know how that feels. Read Our Story to know you are not alone. How you come out of this depends on putting your pride and emotions aside for a moment. The good news is that we may be able to save your business and protect your lifestyle if you are prepared to work with us. It is so important that you know all your options, right through to a Planned Business Liquidation Restructure.
The only failure is letting things get worse.
We can only deal with what is in front of us now. That is courage, that is responsibility, that is leadership. By fightiing smart the first step is to remove yourself from the emotion and think clearly. The second is to understand all your options and that means getting expert advice. There are plenty of advisors out there telling you what they can do – use your gut instinct, your intuition to decide which one you use. If you can do this you will be a better person, a better friend and better leader, stronger and bigger than you were before. (And bigger than people who have never been there.) One of the great things you get when Triple R works with you is the support that let’s you make the right decisions for you and your family, your company and creditors now and for the future. The real challenge is to recognise that you can’t be expected to know everything in this new situation, and that you need to ask for help.
Is there an easier, less risky option?
The whole point of starting a company was to limit your liability for the company debts. It may be wiser to start again.
- Does this mean losing the business? Not necessarily
- Does this mean losing your income streams and assets in the business? Not necessarily
- Does this mean letting down key employees and losing their loyalty? Not necessarily
- Does this mean offending your best suppliers and customers? Not necessarily
- Does it mean taking legal risks? Not with Triple R
Not if you fight smart and understand all your legal options and choose the right advice.
If you do it correctly it may be the best thing you ever did…
The best thing for you, your family and your business. Because Triple R makes sure you survive with maximum asset preservation and asset protection. We also make sure your business is performing properly once you are on your feet.
Look at Our Story if you haven’t already and notice that the determination to fight on even after liquidating the company. But also that without expert advice, meant losing everything and years of wasted time.
You can get yourself into trouble..
trying to hold things together, even for all the right reasons, but there are legal options you are entitled to pursue.
It may sound like self promotion but we need to say it. Get expert advice and make sure you get a sense that the advisor has your interests at heart. Use your gut instinct, its probably the most important asset you have right now because you are in uncharted waters.