Resources on insolvency for directors, practitioners, employees, creditors and investors
An insolvent company is one that is unable to pay its debts when they fall due for payment.
The three most common corporate insolvency procedures are voluntary administration, liquidation and receivership. The personal insolvency procedures that apply to a person, not a company, are bankruptcy and personal insolvency agreements. For more information on these personal insolvency procedures refer to the Australian Financial Security Authority (AFSA).
ASIC has a number of insolvency information sheets to assist you if you’re affected by a company’s insolvency and have little or no knowledge of what’s involved.
To track insolvency trends in Australia, ASIC publishes monthly statistics on both the number of companies entering external administration for the first time and the number of insolvency appointments recorded in that period.
You can search and browse insolvency and deregistration notices on the ASIC-sponsored published notices website.
More in this section
- For directors What to do if your company is in financial difficulty and your role during external administration.
- For creditors Your rights as a creditor when a company is in external administration.
- For employees What are your options if your employer is in financial trouble, your rights in external administration, Fair Entitlements Guarantee (FEG)/General Employee Entitlements and Redundancy Scheme (GEERS).
- For investors How does external administration affect you if you have invested in debentures or a managed investment scheme.
- For shareholders How does external administration affect shareholders?
- For liquidators How to register as a liquidator. Your ongoing obligations, including reporting, how to lodge documents.