FAQs | Company Liquidation and Bankruptcy
When a company is in liquidation the company’s assets will be sold and the proceeds used to pay the company’s debts. If the asset sales do not raise enough funds to clear all of the company’s debts it is possible that the company director/s may have liabilities flow through to them from the company. The director’s liabilities are limited to any insolvent trading claim by the liquidator, the extent of any personal guarantees that they have given, and some ATO debts incurred by the company. If the directors are unable to pay those debts, then they may need to seek the protection of bankruptcy.
Nicholls & Co have a complementary ‘help desk’ to answer your questions on bankruptcy. Call Nicholls & Co on 1300 060 122 or email email@example.com.