Trading while Insolvent

‘Trading while Insolvent’ – also known as ‘Insolvent Trading’, is a serious issue – potentially leaving Directors personally liable for any debts incurred.

If company directors know a company cannot pay its debts but continue to trade regardless, the Directors run the risk of being personally responsible for the company’s debts.

Clearly this is a situation to avoid.

If you know or suspect your company is facing financial difficulty, contact Insolvency Choice today.

There are serious legal consequences for continuing to trade under circumstances where you are aware the company is, or may be, struggling financially.

Under the Corporations Act Directors must assess whether the company can meet all of its debts as and when they fall due. If the answer is ‘no’ it is critical to contact Insolvency Choice to protect your own financial well-being from potential damage.