One thing is clear to us as Insolvency Practitioners: that is, all financial problems can be either solved fully, or the impact minimized, if one can assess the problem early enough.
After identifying a potentially troubling financial situation, how would we assess the problem? Firstly, we would establish if the situation is:

1. Personal
2. Company
3. Both.

1. Personal

For example, if you are under attack from either a visiting Sheriff or garnishee creditor, the Bankruptcy Act 1966 affords immediate protection. That is, protection can be obtained on the same day, this will enable you to protect your personal assets.

2. Company

For example, if you are a company director and your company has been served with a winding up demand by the Australian Taxation Office, steps can be taken under the Corporations Act 2001 to minimize the damage to your business.
Again, protection can be obtained on the same day.

3. Both

For example, if you are a director of a troubled company and you are being sued by a landlord for unpaid rent, we could combine the benefits of the two above Acts and by reference to another independent Insolvency Practitioner, provide a correct response.

Other typical problems we encounter include:

• Building companies unable to operate due to non-payment by the head contractor, (i.e. company matter);
  
  
• Retail shop owners unable to pay rent, or G.S.T. (usually personal matter);
  
  
• Manufacturing companies unable to compete with cheap imports (company matter);
  
  
• Salary and wage earners unable to pay debts from an earlier failed business venture (personal matter);
  
  
• Retail shop owners facing large rental increases (usually personal matter);
  
  
• Franchise company not achieving sales or profit promised to them by head franchiser (company matter);

The second issue to determine when assessing your problem, is the level of urgency. For example, if you have been served with a Bankruptcy Notice and Creditors Petition, urgent action is required, and a response measured in "days" is necessary.

Or perhaps you have only been served with a "Legal Demand" or "Statement of Claim". In these circumstances, a response within "weeks" is appropriate.

The third issue to determine when assessing your problem, is to consider the "whole" facts. For example, if your bank has just frozen your overdraft, it may not be a sensible idea to fix the problem by putting up your house as security and borrowing again. Often clients come to us with an issue that masks the underlying, or "whole" situation. Ascertaining your overall situation can be achieved by interviews, reviewing documents and financial accounts, and will lead to a better outcome.