Insolvency is when a company or person can't pay debts when they are due
There are several options available to an insolvent company or person:
- the most common corporate insolvency procedures for an insolvent company are liquidation, voluntary administration and receivership
- the available personal insolvency procedures for an insolvent person are bankruptcy and personal insolvency agreements.
ASIC regulates companies, it does not manage personal insolvency procedures. For more information about bankruptcy and personal insolvency agreements, visit the Australian Financial Security Authority website.
Find out how a corporate insolvency affects you. I am a...
If you are owed money by an insolvent company, you are a creditor.
ASIC also tracks and reports on corporate insolvency trends in Australia.
Insolvency reforms for small business came into effect on 1 January 2021. These reforms followed the temporary measures introduced in March 2020 in response to the COVID-19 pandemic. These measures only apply to eligible incorporated small businesses with liabilities of less than $1 million.
The reforms include a new:
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