Welcome to the crossroads of new beginnings and tough decisions. At AVA Advisory, we’re not just Liquidation Consultants; we’re your beacon of hope and clarity. If you’re grappling with financial challenges and don’t know who to turn to, our comprehensive Liquidation Advice is tailored just for you. Let’s find a path forward – together.
Our primary focus is exploring turnaround solutions to keep your business operating. However, if we determine that closure is the best option, we’ll guide you through the liquidation process.
Our proven solutions are meticulously crafted to guide businesses out of the depths of debt, providing a personalised roadmap to financial freedom.
Our team is made up of individuals who have held directorial position.
AVA excels in conducting thorough financial assessments.
AVA places a strong emphasis on transparent communication and stakeholder empowerment.
Liquidation is often a word that no business owner wants to hear, yet understanding it can be a vital step towards resolution. It’s the process where a business ceases operations, with its assets being sold off to repay creditors. It can mark the end of a challenging journey but also pave the way for fresh starts. While it may seem daunting, liquidation is a structured approach to ensure that debts are settled in an orderly manner, providing closure to what may have been a turbulent period of financial distress.
There are several avenues on the liquidation map, each with its own set of rules and outcomes. Voluntary Liquidation occurs when the company’s directors decide to wind up the company’s affairs proactively. It can be a Member’s Voluntary Liquidation (MVL), where the business is solvent, or a Creditor’s Voluntary Liquidation (CVL) for insolvent cases.
Alternatively, Compulsory Liquidation (also known as a “statutory winding up order” or “Court ordered liquidation”) is when creditors force the issue through a court order from the Supreme or Federal Court, often when a business can no longer meet its financial obligations (e.g.if a company fails to settle a creditor’s claim for
an amount over $4,000 within twenty-one (21) days after receiving a formal statutory demand in writing).
Each type of liquidation carries different implications, but our goal is to demystify the process and assist you in choosing the best route forward. Our business liquidation advice experts can explain the differences and guide you through the liquidation process. We provide practical liquidation advice tailored to your circumstances and can explain the liquidation process in Australia to you in “plain English” – without all the industry jargon and technical terms.
When a company faces financial strain, directors might contemplate liquidation due to a variety of challenges. Financial stressors can manifest in difficulties paying company tax, employee wages, or recovering debts owed to the business. If creditors are pressuring for debt payment, it could signal insolvency, defined as being unable to pay debts as they fall due. Insolvency isn’t always black and white, but if a company is insolvent and continues to trade, directors risk breaching insolvent trading laws, carrying personal consequences.
For directors, liquidation can be a beneficial option, providing protection from insolvent trading and personal liability for tax debts. It alleviates the stress of managing an insolvent company, addressing pressures from employees, shareholders, banks, and creditors. Even if a company is solvent, directors may consider liquidation for potential tax benefits, with different types of liquidation available for such circumstances.
In certain situations, external factors may impose liquidation through a court order (court liquidation). This arises after a creditor issues a Creditors’ Statutory Demand, and if unsuccessful in debt recovery after 21 days, they can seek a court-ordered wind-up, leading to enforced liquidation.
Disclaimer: This content is for informational purposes only and does not constitute legal advice.
Facing liquidation can be a sombre reality for any business owner. It’s not just a financial reckoning but also an emotional and personal one. Your life’s work, passion, and dreams might seem like they’re being reduced to balance sheets and asset sales. But it’s also a time for reflection and rebuilding.
While it does mean that your current business structure will come to an end, it also brings with it the relief of handling overwhelming debts and the opportunity to learn and start anew without past burdens. In this delicate phase, emotions run high and decisions feel weighty, as:
> Trading ceases – Ongoing business operations and trading are discontinued once liquidated.
> Assets are sold off – Any company assets will be valued and sold off by the liquidator to pay debts.
Here are some of the critical ways AVA advisory can assist business owners during liquidation process.
1. Explain the process – we help you understand the complex liquidation process and what to expect every step of the way. Through our decades of combined experience, our liquidation advisors provide reassurance and guidance during within a n invariably a stressful emotional time
2. Liquidation liaison – we help you understand the complex liquidation process and what to expect every step of the way. Through our decades of combined experience, our liquidation advisors provide reassurance and guidance during within a n invariably a stressful emotional time
3. Meet reporting obligation – we help you understand the complex liquidation process and what to expect every step of the way. Through our decades of combined experience, our liquidation advisors provide reassurance and guidance during within a n invariably a stressful emotional time
4. Creditor communication – we help you understand the complex liquidation process and what to expect every step of the way. Through our decades of combined experience, our liquidation advisors provide reassurance and guidance during within a n invariably a stressful emotional time
5. Provide valuation – we help you understand the complex liquidation process and what to expect every step of the way. Through our decades of combined experience, our liquidation advisors provide reassurance and guidance during within a n invariably a stressful emotional time
6. Guide next steps – we help you understand the complex liquidation process and what to expect every step of the way. Through our decades of combined experience, our liquidation advisors provide reassurance and guidance during within a n invariably a stressful emotional time
The right guidance from qualified liquidation experts can make navigating to financial distress much smoother for small business owners.
With AVA Advisory assistance, business owners can focus their time and energy on future prospects, leaving the closure details to experts. For Corporate Liquidation Help contact us today on 1300 181 220 for an obligation-free, cost-free consultation online today
Now, Let’s Start Mapping Your Path to Financial Freedom.
Don’t wait – the earlier we start, the more debt relief options will be available. Contact us today on 1300 181 220 for an obligation-free, cost-free consultation. Share details of your situation and concerns in confidence.
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