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COMMERCIAL LAW
Insolvency situations present complex challenges and risks for all parties involved—whether you’re a creditor seeking recovery, a director facing difficult decisions, or a business owner exploring restructuring options. At Gouveia Legal, we provide clear, practical advice that helps you understand your rights, obligations, and options when navigating these challenging waters.
Our insolvency practice covers all aspects of financial distress scenarios:
We help clients navigate the various formal insolvency processes:
Every insolvency situation requires a tailored approach. Our strategic advice considers:
As a family-owned firm with offices in Parramatta and serving Greater Sydney, our insolvency practice delivers:
In Australia, bankruptcy applies only to individuals who cannot pay their debts, while insolvency generally refers to companies that cannot meet their financial obligations. Different legal processes apply to each situation—bankruptcy for individuals and liquidation, voluntary administration, or restructuring for companies.
Key warning signs include consistently paying bills late, relying on loans to pay essential expenses, declining revenue, creditor demands, supplier restrictions to COD terms, ATO debt accumulation, county court judgments, and difficulty making employee superannuation payments. Seeking advice early when these signs appear can provide more options.
Directors can be personally liable for company debts in several circumstances, including insolvent trading, unpaid superannuation guarantee charges, unpaid PAYG withholding tax, and unfair preference payments made while insolvent. Directors may also face penalties for breaching their duty to prevent the company from trading while insolvent.
Safe harbour protection was introduced to give directors breathing space to develop restructuring plans without personal liability for insolvent trading. To access this protection, directors must begin developing a course of action reasonably likely to lead to a better outcome than immediate administration or liquidation, keep proper books and records, pay employee entitlements, and lodge tax returns.
You have 21 days from service to either pay the debt, reach a settlement with the creditor, or apply to the court to have the demand set aside. Valid grounds for setting aside a demand include a genuine dispute about the debt, an offsetting claim, or defects in the demand itself. Ignoring a statutory demand can result in a presumption of insolvency.
Secured creditors generally have priority over unsecured creditors up to the value of their security. They can choose to:
A DOCA is a formal agreement between a company and its creditors that sets out how the company’s affairs will be managed to maximise the chances of continuing in business or to provide a better return to creditors than immediate liquidation. It’s one possible outcome of voluntary administration and must be approved by a majority of creditors both in number and value.
TESTIMONIALS
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Andrew is a Sydney-based solicitor with a strong background in commercial litigation and transactional legal work. He has acted for a broad range of clients across insolvency, estate disputes, and property-related matters. His experience also extends to drafting and negotiating commercial agreements, advising on business and property transactions, and preparing tailored estate planning documents.
Known for delivering clear, commercially minded advice, Andrew established Gouveia Legal to provide clients with legal services that are practical, accessible, and results driven. Whether navigating a dispute or managing a transaction, he brings a strategic approach grounded in understanding each client’s goals and delivering value at every stage.
Clients come to Andrew for straightforward guidance and a solicitor who takes the time to understand their situation and can get results.
In his spare time, Andrew likes to train Jiu-Jitsu, take his dog Henry for long walks and enjoys watching anything by Guy Ritchie or Martin Scorsese.
Melissa is an experienced lawyer with extensive expertise in personal injury law and a keen interest in immigration.
Holding a Bachelor of Medical Science and a Graduate Law Degree, she combines a strong analytical foundation with a compassionate approach to legal advocacy.
With significant experience working as both a plaintiff lawyer at Australia’s top firms and a legal representative for Australia’s insurers, Melissa brings a well-rounded perspective to every case she handles.
Known for her exceptional negotiation skills, Melissa is dedicated to securing the best outcomes for her clients. Her empathetic nature allows her to connect with individuals, understanding their unique challenges and providing clear, supportive guidance through complex legal processes. Committed to achieving justice, Melissa ensures her clients receive fair and timely resolutions to their claims, whether through skilled negotiation or robust representation.
In her spare time, Melissa enjoys fashion, going out with friends and family.
