Insolvency Lawyer Brisbane


Hire our Insolvency Lawyer in Brisbane to help you with liquidation


Liquidation is fundamentally the process of ending a company’s existence, the liquefaction of its structure and assets, if debts exist there will be proportionate distributions in order of priority and precedence of the liquefied assets.

1. Official Liquidation – The application for liquidation is made to the court by creditors of the company. In order for Official Liquidation to commence, the creditor/s must verify to the court that the company is insolvent (Unable to pay its debts as and when they fall due). The liquidation is initiated and an official liquidator is appointed. The liquidator will conduct thorough research into the financial affairs of the company in order to distribute these assets and ascertain whether or not illegal/improper activities have taken place. Hire a professional insolvency lawyer in Brisbane to sail smoothly.

2. Provisional Liquidation – If the court considers the assets or financial resources of the company may be at risk during the interim between filing of the application and court hearing, a provisional liquidator may be appointed to administer and exercise control of the company in order to protect the best interests of the creditors and higher distributions . Provisional Liquidation will often be executed to ensure creditors are compensated as close to full satisfaction of arrears as possible when Official Liquidation commences.

3. Creditors Voluntary Liquidation – A CVL occurs when a business is no longer able to pay its debts as and when they fall due, and the shareholders come to an agreement under special resolution that the company is to be wound up. The company must be insolvent in order to perform a CVL. Once a company becomes insolvent it may be the only option to satisfy the debts in a feasible manner, without waiting for the liquidation to be appointed by the court which would result in Official Liquidation.

4. Members Voluntary Liquidation – An MVL is when the company is solvent, and the directors/shareholders simply agree to cease trading of the company, wind up its affairs, and liquidate the structure and assets to completely dismantle the company.

Consult with our insolvency lawyers in Brisbane for more information.

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