Insolvency Lawyers Brisbane

Insolvency matters are extremely complicated because they involve multiple stakeholders and a range of complex legal and financial factors. But with our expertise, we’ll help you navigate these complexities and make informed decisions along the way to resolve your insolvency matters.

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Do you need an insolvency lawyer?

Insolvency is when a company can’t pay all its debts as and when they fall due. If your company is currently facing such financial challenges, you should consider engaging Gibbs Wright Litigation Lawyers.

We will assess your situation and lay out your options on how you can navigate the complexities of insolvency. This may include proposing and negotiating agreements with your creditors, ensuring compliance with insolvency laws, and exploring legal strategies to resolve your financial distress.

Ultimately, our goal is to help you make informed decisions and achieve the best possible outcomes given your specific circumstances. Speak with us as early in the process as possible so we can help you understand your options, protect your rights, and resolve your financial challenges.

insolvency
insolvency

Insolvency Disputes We Can Resolve

We work both with companies who are facing corporate insolvency and help them understand and navigate:
  • Statutory demands
  • Winding Up proceedings
  • Voluntary administration
  • Receiverships
  • Liquidation
  • Antecedent transactions

How to get started

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1

Tell us your
legal matter

Speak to one of our litigation lawyers via phone for free and provide the necessary details and documents so we can better understand your situation.
2

We’ll let you know
where you stand

If we think that you have a good argument, we’ll devise a strategy for you on how we will take on your matter, and give you legal guidance and a fee estimate. All for free.
3

You Decide

It’s ultimately your decision whether to hire us or not based on the strategy and fee estimate we gave you. There’s no obligation and no pressure to proceed.
1

Tell us your legal matter

Speak to one of our litigation lawyers via phone for free and provide the necessary details and documents so we can better understand your situation.
2

We’ll let you know where you stand

If we think that you have a good argument, we’ll devise a strategy for you on how we will take on your matter, and give you legal guidance and a fee estimate. All for free.
3

You Decide

It’s ultimately your decision whether to hire us or not based on the strategy and fee estimate we gave you. There’s no obligation and no pressure to proceed.

Why Gibbs Wright

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What we do is very simple: we sue people, defend people when they get sued and negotiate resolutions to disputes to prevent proceedings from commencing. It’s the only thing we do and we do it really well.

Having done this for many years, we know the law and the legal processes like the back of our hands. But more importantly, we know how to win. No matter the industry you’re in or how complex your situation is.
When we take on your legal matter, you know that our team of expert litigation lawyers will fight for you not just for the sake of it. We will fight relentlessly so you can get back to business as soon as possible.  

Hear it from our satisfied clients

Expert litigators, ready to fight for you.

Spencer Wright

Litigation Director

Spencer leads the strategic operations at Gibbs Wright, with a wealth of knowledge on Queensland law and business operations.

Melany Dowse

Special Counsel

Melany represents a range of clients from individuals and small businesses to body corporates and insolvency practitioners.

Mitchell Caldwell

Senior Litigation Solicitor

Mitchell provides practical, accurate and timely advice and unique solutions to assist corporate clients, small businesses and individuals across a range of areas including property, contract, and construction disputes. Mitchell works closely with all the team members of the firm to ensure that Gibbs Wright delivers first-class legal service, advice and representation.

Emma Bettridge

Special Counsel

Emma is an experienced commercial litigator with a proven track record of success in complex commercial disputes. With a wealth of experience obtained in both boutique and tier one firms, Emma is dedicated to providing her clients with practical and solutions-oriented advice.

David Thomas

Litigation Solicitor
David has practised predominantly in the areas of building and construction, commercial litigation and dispute resolution. Prior to becoming a lawyer, David was a construction electrician in the mining and oil and gas industries working on some of the largest projects in Australia.

John Clemente

Litigation Solicitor

John’s commitment to his clients is unparalleled. He is deeply perceptive, ensuring that every client receives personalised and effective counsel.

Frequently Asked Questions

  • What is the difference between bankruptcy and liquidation?

    Bankruptcy applies to individuals, and it involves a legal declaration that an individual is insolvent. Liquidation, on the other hand, pertains to companies and is the process that occurs after a Court has determined that a company is insolvent. This process involves the winding up of the company business and distributing the assets of the Company to creditors

  • What are the indicators of insolvency?

    There is a checklist of corporate insolvency indicators which is used to assess the financial situation of a company.
    The indicators include:

    Continuing losses

    Ongoing losses over a sustained period, without enough working capital to absorb them, can render a company insolvent.

    Liquidity ratios below one

    A company’s liquidity ratio is produced by comparing its current assets with its current liabilities, provided those assets can be realised quickly.
    Other factors such as cash flow, the age of debtors, and the availability of borrowed funds must also be considered.

    Overdue tax

    Avoiding Commonwealth and State tax liabilities is a common but unsustainable way for a company to survive and maintain cash flow.

    Poor relationship with current bank

    A bank will have information not available to other creditors, such as available funds and cash flow. A company may have been refused further finance from the bank due to a history of loan defaults or dishonoured cheques, or because of the company’s deteriorating financial position.

    No access to alternative finance

    Corporate insolvency is linked directly to an inability to obtain ready cash to cover debts. If a company in need of funds is unable to convert short-term debt to long-term debt or borrow money from a non-bank source to overcome a cash crisis, this suggests a cash flow problem.

    Inability to raise further equity capital

    If potential equity investors know an eventual return may be delayed or uncertain, they will not be satisfied that the return outweighs the risk.

    Suppliers imposing restricting trading terms

    When a company is not paying debts on time, a creditor may institute terms such as payment on delivery of goods or stop supplying goods until the level of debt decreases.

    Creditors’ unpaid outside trading terms

    A company increasingly making payments outside trading terms shows it may be having difficulty paying debts when they fall due.

    Post-dated and dishonoured cheques

    A post-dated cheque flags to a creditor that the company does not have funds to pay its debt at that time but expects to have funds by the date of the cheque.

    A dishonoured cheque demonstrates that the company does not have enough to pay in full.

    Special arrangements with selected creditors

    Creditors may agree to make special arrangements (such as payment plans) to ensure that trade continues and that there is some repayment of debt.

    Legal action

    This can include solicitors’ letters, summonses, judgments or warrants against the company, which imply that creditors have increasing concerns about the company’s ability to pay debts.

    Payments of irreconcilable rounded sums

    These are payments to a creditor that are not reconcilable to specific invoices. This is usually done because a company cannot pay its debt in full and has not been successful in negotiating a payment plan.

    Inability to produce timely and accurate financial information

    A company must keep accurate financial records under the Act. If it fails to keep records, it will be deemed to have been insolvent for the period that the records were not kept.

    If your company has any of these indicators, or you have concerns about how your company is travelingtravelling financially, call Gibbs Wright Litigation Lawyers for advice.

  • Can I avoid bankruptcy or liquidation?

    In some cases, yes. Options like debt agreements, debt consolidation, or voluntary administration for businesses may provide alternatives to bankruptcy or liquidation. Insolvency lawyers can assess your specific situation and recommend the best course of action.

    If your company has any of these indicators, or you have concerns about how your company is travelingtravelling financially, call Gibbs Wright Litigation Lawyers for advice.

  • How will liquidation affect the company’s assets?

    Liquidation for companies involves selling assets to pay off debts, potentially leading to the closure of the company.

  • Can I continue running my business during voluntary administration?

    Yes, you can typically continue operating your company during voluntary administration. An administrator takes control of the company temporarily to assess its financial position and develop a plan for its future. The aim is to achieve a better outcome for creditors while allowing the business to continue.

  • What happens to my employees if my business goes into liquidation?

    Employee entitlements are a priority in liquidation. They are typically paid from the assets of the company. The Fair Entitlements Guarantee (FEG) scheme may also assist eligible employees in case the company can’t meet its obligations.

  • How long does the insolvency process take?

    The duration of insolvency processes can vary widely depending on the complexity of the case and various factors. The liquidation process may take months or even years to complete.

  • Can I negotiate with creditors to avoid insolvency proceedings?

    Yes, you can negotiate with creditors to reach debt settlements, repayment plans, or other agreements that might help you avoid formal insolvency. Insolvency lawyers can facilitate these negotiations.

Explore your legal options with Gibbs Wright Litigation Lawyers - Brisbane’s Leading Litigation Firm.

Our expert litigators will let you know where you stand and give you legal guidance.