The personal insolvency regulator, the Australian Financial Security Authority (AFSA) has recently issued a warning around dodgy insolvency providers.
It is anticipated that there will be a wave of business failures when the temporary insolvency relief measures come to an end at the end of this year. It is therefore a major concern of AFSA that struggling businesses may become an easy target for dodgy advisors. AFSA has launched a public campaign to raise awareness, with a range of tell-tale signs for the public to look out for. Some of the key signs that an advisor could be underhanded are:
- Asking for payment with a promise to get the person or business out of bankruptcy/insolvency within a few months;
- Offering to organise personal or business affairs so that property will be protected in bankruptcy or corporate insolvency;
- False, exaggerated or fake debts in a bankruptcy application;
- Advising that a bankruptcy or debt agreement will not affect the person’s credit rating.
It is more important than ever to be prepared and seek professional and trusted assistance sooner rather than later. Obtaining relevant advice now, before the current relief measures come to an end, will avoid the need to rush and make split decisions.
Here at Rankin Business Lawyers, we have practitioners with insolvency law experience, as well as close working relationships with many trusted insolvency practitioners.
We encourage you to get in contact with us to discuss your business needs and the options that might be available to you once the current relief measures end at the start of next year.