Insolvency and Restructuring

Every year, numerous Australian businesses and individuals face insolvency. The legal framework governing corporate insolvency, restructuring, and personal bankruptcy is highly technical, time-sensitive, and involves balancing the competing interests of directors, creditors, employees, and regulators.

At RA Law Group, our insolvency and restructuring team combines deep regulatory knowledge with commercial insight to deliver clear, decisive advice and practical outcomes in even the most challenging circumstances.

What is Insolvency?

In everyday terms, insolvency simply means not having enough money (or access to money) to pay what you owe when it’s due. Common examples include:

A company that can’t pay staff wages or suppliers on time.
An individual who can’t pay credit card bills, loans, or rent when they fall due.
A business that keeps missing tax payments or is constantly relying on overdrafts or new loans to pay old ones.

In short: Insolvency = being unable to pay your bills when they are due. It’s the point at which a person or business can no longer meet their financial obligations as they arise.

Corporate Insolvency

When a company is unable to pay its debts as and when they fall due, there are five principal pathways:

1. Voluntary Administration

An independent administrator is appointed to take control, assess viability, and propose a restructuring plan (often leading to a Deed of Company Arrangement).

2. Deed of Company Arrangement (DOCA)

A binding agreement between the company and its creditors that allows the business to continue trading while repaying creditors under flexible terms.

3. Liquidation

The company is wound up, assets are realised, and proceeds are distributed to creditors in the statutory order of priority.

4. Receivership

A secured creditor appoints a receiver to take control of specific assets to recover the secured debt.

5. Small Business Restructure

A simplified lower cost alternative to Voluntary Administration for eligible businesses that want to keep trading whilst restructuring their debts.

Personal Insolvency

For individuals, options include:

1. Voluntary Bankruptcy

You voluntarily apply to be declared bankrupt (usually for 3 years).

2. Personal Insolvency Agreements

We work on a formal repayment plan to propose to your creditors.

3. Debt Agreements

We seek to put forward a set amount (usually cent in the dollar) to be administered by a Debt Agreement.

Our Expertise

RA Law Group provides end-to-end legal support across the full spectrum of solvency and insolvency matters, including:

Pre Appointment Advice

Early-stage solvency assessments and financial health checks
Advice on director duties, insolvent trading risks, and safe-harbour protections
Guidance on personal liability and strategies to mitigate exposure

Asset Protection and Risk Mitigation

Pre-insolvency structuring and asset protection strategies
Establishing protective trusts and corporate structures
Advice on phoenix activity risks and compliance

Restructuring and Turnaround Strategies

Designing and implementing formal and informal restructurings
Negotiating with creditors, banks, and other stakeholders
Advising on Voluntary Administration strategies
Advising on Small Business Restructuring Processes (SBRP)

Insolvency Proceedings and Appointments

Advising and representing administrators, liquidators, and receivers
Guiding directors and companies through voluntary administration, liquidation and receivership
Representing individuals in bankruptcy and personal insolvency agreements

Regulatory Compliance and Advice

Ongoing compliance advice under the Corporations Act 2001 and Bankruptcy Act 1966
Responding to ASIC investigations and enforcement actions

Debt Recovery and Enforcement

Acting for creditors to enforce security and recover debts
Defending debtors against aggressive enforcement actions
Pursuing or defending preference, uncommercial transaction, and voidable transaction claims

Insolvency Litigation and Dispute Resolution

Claims involving insolvent trading, unfair preferences, and voidable transactions
Public examinations and director banning proceedings
Mediation, arbitration, and court advocacy in complex insolvency disputes

Why engage RA Law Group

Work with a team specialised in Insolvency and Restructuring.

Our team includes lawyers with decades of experience acting for companies, directors, creditors, liquidators, and trustees across Australia.

We prioritise workable, value-preserving solutions that align with your business or personal objectives.

From early intervention to formal appointments, we identify opportunities and risks early to maximise recovery and minimise liability.

Whether you are a sole trader, SME, or large corporate creditor, you receive senior-level attention and advice customised to your circumstances.

We have a strong track record of achieving favourable restructurings, successful defences against liquidator claims, and substantial recoveries for creditors.

Contact our Insolvency & Restructuring Team Today

Let our experienced insolvency lawyers guide you through the options and protect your interests at every stage.