The right legal framework depends on your business structure: Companies fall under the Corporations Act Sole traders or partnerships are subject to the Bankruptcy Act blog.wmcaccounting.com.au Each carries different implications for your personal liability and what you may lose, so it’s vital to know which rules apply.

Insolvency should always be a last resort — the consequences (for credit, reputation, personal liability) can be lasting. Before considering that route, explore options such as: Restructuring your business Tightening cash flow management Seeking alternative financing Adopting stricter budgeting controls blog.wmcaccounting.com.au Relying on expert business advisory support can be critical in navigating these complex choices.

If your business is beyond saving, you still have structured paths you can pursue: For individuals or small operators: debt agreements, personal insolvency agreements, or a declaration of intention (temporarily freezing debts) blog.wmcaccounting.com.au For companies: voluntary administration or, depending on creditor action, receivership or liquidation