Running a company can be challenging, especially when cash flow pressures build. If you find yourself in financial difficulty, there are alternative pathways for small businesses other than traditional liquidation and administration.
Must be a corporation to qualify
In 2021, new laws were introduced to make corporate insolvency simpler and more affordable for small, incorporated companies. The changes introduced are the Simplified Restructuring Process, and the Simplified Liquidation Process.
Unincorporated businesses, such as sole traders and partnerships, fall under personal bankruptcy laws, which provide separate options and obligations under the Bankruptcy Act 1966 (Cth).