Voluntary administration allows businesses to address insolvency issues, and if possible, return it to healthy trading position.

Directors are liable for a range of company debts and lodgements; and have a duty not to trade while insolvent.

These are the key monetary thresholds and time limits that apply in relevant insolvency appointments.

Liquidation is a formal process to dismantle a company’s affairs. It can provide relief to those running the company by placing company control into the hands of a third party - a liquidator. The liquidator then deals with the company’s operations and its debts.

Corporate insolvency refers to a situation where a company is unable to meet its financial obligations as they come due. This means the company lacks sufficient cash flow or assets to pay off debts owed to creditors.

Bankruptcy is a legal process where a bankruptcy trustee is appointed to administer an insolvent person’s affairs, in order to provide for a fair distribution of that person’s divisible assets to their creditors.

The small business restructuring (SBR) process allows a small business that has found itself in an uncertain financial position to propose a single offer to its creditors seeking to settle its debts for a lesser sum than is owed.