Insolvency for creditors

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
  • unsecured.

A secured creditor is someone who has a ‘security interest’, such as a mortgage, in some or all of the company’s assets, to secure a debt owed by the company. Lenders usually require a security interest in company assets when they provide a loan. An unsecured creditor is a creditor who does not have a security interest in the company’s assets.

Is the company I am dealing with in financial trouble?

Signs that may indicate the company you are dealing with is in financial trouble include continued late payment of invoices, dishonoured payments or the issuing of post-dated cheques.

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.

More information

For further information about insolvency - go to Australian Restructuring Insolvency and Turnaround Association (ARITA).

Quick links

Ask us a question

Information sheets


Return to Overview


What's new

Joint ASIC/AFSA/ARITA liaison meeting

ASIC, AFSA and ARITA held their bi-annual liaison meeting on 5 December 2017. Read the summary of discussion points.


Industry funding

The Government has introduced new laws that change the way ASIC is funded. Regulated entities will receive an invoice for ASIC’s regulatory services delivered in the prior year. Find out what this means for registered liquidators.



Insolvency Law Reform Act 2016

Releases on insolvency

Liquidator registration applications

Insolvency statistics


Sign up for:

ASIC Corporate Insolvency Update

Published notices

View insolvency and deregistration notices on the published notices website.

ASIC and registered liquidators

Last updated: 01/09/2017 02:09