Insolvency for creditors

Am I a creditor?

You are a creditor of a company if the company owes you money. Usually, a creditor is owed money because they have provided goods or services, or made loans to the company. An employee owed money for unpaid wages and other entitlements is a creditor. A person who may be owed money by the company if a certain event occurs (e.g. if they succeed in a legal claim against the company) is also a creditor, and is sometimes referred to as a ‘contingent’ creditor. There are generally two categories of creditor:

  • secured, and
  • unsecured.

A secured creditor is someone who has a ‘security interest’, such as a mortgage, in some or all of the company’s assets, to secure a debt owed by the company. Lenders usually require a security interest in company assets when they provide a loan. An unsecured creditor is a creditor who does not have a security interest in the company’s assets.

Is the company I am dealing with in financial trouble?

Signs that may indicate the company you are dealing with is in financial trouble include continued late payment of invoices, dishonoured payments or the issuing of post-dated cheques.

What are my options if I believe a company is in financial trouble?

If you suspect that a company is in financial difficulty, you should first try and raise your concerns with the company. If this fails to resolve your concerns, your options include:

  • reviewing ongoing trading arrangements
  • seeking legal advice.

More information

For further information about insolvency - go to Australian Restructuring Insolvency and Turnaround Association (ARITA).

Quick links

Ask us a question

Information sheets

 

Return to Overview

 

What's new

ASIC reports on corporate insolvencies 2017–18

ASIC has published its annual overview of corporate insolvencies based on statutory reports lodged by external administrators for the 2017–18 financial year. 18-342MR. 14 November

Report On Company Activities and Property (ROCAP)

After an extensive revision process and industry consultation conducted through an external consultant, ASIC has released the new ROCAP - Report On Company Activities and Property to replace the RATA. 

Industry funding

The Government has introduced new laws that change the way ASIC is funded. Regulated entities will receive an invoice for ASIC’s regulatory services delivered in the prior year. Find out what this means for registered liquidators.

 

Quicklinks

Insolvency Law Reform Act 2016

Releases on insolvency

Liquidator registration applications

Insolvency statistics

 

Sign up for:

ASIC Corporate Insolvency Update

Published notices

View insolvency and deregistration notices on the published notices website.

ASIC and registered liquidators

Last updated: 01/09/2017 02:09