Tag: Bankruptcy

Land tax, interest rate pressures on landlords adding to corporate and personal insolvency ‘domino’ personal assets at greater risk

The retail industry in Australia has been facing a crisis for a while, with many brands struggling to stay afloat.

In a perfect world, suppliers would prefer to be paid cash up front. However, in reality, the world works on credit. Trade credit is inevitable and so is the debt that comes with it. For most businesses, trade credit is essential for growth as businesses don’t have to pay suppliers on the spot but rather with […]

Hard to believe but Toys “R” Us has sought bankruptcy protection. It’s interesting to hear the Australian operations remain unaffected, it’s hard to believe as we’ve heard and seen for so many years the success of Toys “R” Us. As the old adage goes…learn from failure. Here are five things every retailer needs to learn […]

Australian businesses are set to experience an increase in insolvencies this year as a result of another difficult economic year, according to the recently-published Atradius Economic Outlook. The likely 2% increase in insolvencies puts Australia in step with the UK and Canada.  The improving trend in the business environment across Australia and other advanced economies is […]

Current Insolvency provisions under the Australian Corporations Act impose a duty on Directors not to trade while insolvent, but also not to trade in a manner that will lead it to insolvency. Although this may not appear too onerous an obligation, it can actually be trickier than it seems.  Some companies regularly flirt with insolvency, […]

With administrations and liquidations steadily on the rise, more businesses are finding themselves having to deal with the fact that their trading partner has fallen into potentially fatal financial strife.

The Commonwealth Bank has agreed to a settlement with former Storm Financial clients and plans to discuss compensation details this Saturday in Townsville, North Queensland. Some former clients of Storm Financial will be eligable for cash and other concessions as a part of the compensation deal. In responding to the deal, the Storm Investors’ Consumer […]

Australia’s largest privately-owned debt collection agency Prushka has rejected claims by the Council of Small Business that proposed changes to bankruptcy legislation will produce better outcomes for SME’s. CEO of Prushka, Roger Mendelson said the Government’s proposal to change the current bankruptcy threshold from $2,000 to $10,000 shows an obvious lack of understanding of small […]

Proposed changes to Australia’s bankruptcy laws have today received support from the Council of Small Business of Australia (COSBOA). One the eve of Senate debate around the Bankruptcy Legislation Amendment Bill 2009, the Council of Small Business has affirmed support for the bill which will ultimately improve the position for many small businesses that experience […]