What is rg209?

This is a guide for credit licensees and credit applicants. It sets out ASIC’s views on what the responsible lending obligations in Ch 3 of the National Consumer Credit Protection Act 2009 (National Credit Act) require, and steps you can take to minimise the risk of non-compliance with these obligations.

Is insolvency the same as bankruptcy?

Bankruptcy is a legal process or court order, while insolvency is a state of financial distress. Bankruptcy is a type of insolvency, but there are others. Bankruptcy isn’t the only way out of insolvency. Bankruptcy applies only to individuals and sole traders with unlimited liability.

What is trading Insolvently in Australia?

A company is insolvent when it cannot pay its debts when they are due. There are serious penalties for allowing your company to trade while insolvent.

What is substantial hardship?

“Substantial hardship” exists where a consumer cannot meet repayment obligations where the amount available for expenses that are necessary for living and taking part in society is insufficient.

What are the 3 requirements under the responsible lending regulations set out in the National Consumer Credit Protection Act 2009?

Three key steps

• Make reasonable inquiries about the consumer’s financial situation, requirements, and objectives.
• Take reasonable steps to verify the consumer’s financial situation.
• Make a preliminary assessment of whether the credit contract is ‘not unsuitable’ for the consumer.

Can you reverse liquidation?

It is often assumed that once a winding up petition has been granted by the Courts, there is no way of reversing it. The liquidator will take control of the firm, gather together any assets and liquidate them to pay off creditors. Once this has been done, the company will be closed.

Can you liquidate a company and start again?

Can I start a new company post-liquidation? The general answer is that you can be a director of as many companies as you like at the same time. However, if you have been the director of a liquidated company, and you set up a new company it cannot have the same or a similar name to the old company.

How long does insolvency stay on credit file?

four years
Previous inquiry information remains on your credit file for four years. Insolvency information, including record of entry into No Asset Procedure and single bankruptcy, may be held for four years from the date of discharge. Multiple insolvencies may be held indefinitely.

Can a liquidated company still trade?

The short and sweet answer to this question is no, it cannot. Once the decision has been made to force a business into liquidation there is very little to no way back for the company and its directors.

What is a Section 88 default notice?

Credit Reporting and defaults Send a section 6Q (of the Privacy Act) notice which must tell your client the payments is overdue. This notice is usually included in the default notice under section 88 of the National Credit Code. Your client must be 60 days in default.

Can a liquidated corporation start again?

Starting a new company following liquidation In some cases, directors purchase some or all of the old business’ assets through the liquidator, so this may be an option if you want to start again after liquidating. It’s also worth knowing that the restrictions on using company names are stringent.

How long does creditors voluntary liquidation take?

Should funds be available, the Liquidator will agree creditors’ claims and deal with any distributions to creditors. The process of the liquidation could take between 6 months to several years depending on the case.

What happens to debt after liquidation?

When a company is liquidated, all its assets are sold and the company removed from the official register. Any debts that remain at the end of an insolvent liquidation process are written off, as the business is unable to generate more funds for creditors in its financially depleted state.

How can I liquidate my business with no money?

If your company has no debts If you simply want, or need, to close down the company, and there aren’t any debts or any assets to liquidate, then you can dissolve the company and have it struck off the Companies House register.