It has been extremely difficult for many to keep their businesses afloat amid the COVID-19 crisis. Throwing a lifeline to small businesses, the government has overhauled bankruptcy laws to save thousands of jobs and companies on the verge of collapse.<\/p>\n
From the current \u2018creditor-in-possession\u2019 regime, Australia\u2019s insolvency laws shifted to a \u2018debtor-in-possession system\u2019. Entities with liabilities below $1 million<\/strong> will be able to access the scheme.<\/p>\n The key features of this temporary insolvency law include:<\/p>\n These reforms will commence on 1 January 2021.<\/p>\n With these changes, the financial pressure on businesses will be significantly reduced, providing more breathing room for business owners to work out their next steps.<\/p>\n If your business is struggling to stay afloat and you are finding it increasingly difficult to repay ongoing debts, these temporary changes to insolvency laws may be welcome relief.<\/p>\n However, it is important to note that these are only temporary. So now is the perfect time to make a realistic assessment of your business\u2019 financial situation and its viability.<\/p>\n If shutting down your business is inevitable after careful assessment, it will pay to have these conversations sooner.<\/p>\n Closing your business is a huge decision to make. We understand how difficult this can be for you, so we are here to help you make the best decision for you. We\u2019ll help you carefully assess if you have exhausted all possible solutions or work out a plan with you for your business recovery.<\/p>\n If you need expert advice, feel free to book a consultation with us.<\/p>\n","protected":false},"excerpt":{"rendered":"\n
What Does This Mean for My Business?<\/h3>\n
Need Help Assessing Your Business?<\/h3>\n