Insolvency for creditors
- Am I a creditor?
- Is the company I am dealing with in financial trouble?
- What are my options if I believe a company is in financial trouble?
- More information
- Quick links
- Information sheets
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
A secured creditor is someone who has a ‘charge’, such as a mortgage, over some or all of the company’s assets, to secure a debt owed by the company. Lenders usually require a charge over company assets when they provide a loan. An unsecured creditor is a creditor who does not have a charge over the company’s assets.
Is the company I am dealing with in financial trouble?
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.
- Voluntary administration
- Deed of company arrangement
- Independence of insolvency practitioners
- Fees of insolvency practitioners
For further information about insolvency - go to Australian Restructuring Insolvency and Turnaround Association (ARITA).
- Disputes about goods and non-financial services (INFO 161)
- Insolvency: a glossary of terms (INFO 41)
- Voluntary administration: a guide for creditors (INFO 74)
- Liquidation: a guide for creditors (INFO 45)
- Receivership: a guide for creditors (INFO 54)