By Talk to a Lawyer · Published 19 September 2026 · 3 minute read
A business in financial difficulty may need advice before a missed payment becomes a wider crisis. State whether you are a director, creditor, employee, shareholder or guarantor. Restructuring and insolvency involve competing interests, and advice to a company does not automatically protect everyone connected with it.
Read. Prepare. Find an office.
Use this guide to organise your questions, then confirm the provider’s experience, availability and first-stage fee.
Find insolvency & restructuring providers →Make the cash and obligations visible
Prepare current cash balances, aged receivables and payables, finance obligations, employee liabilities and tax correspondence. Note secured creditors, guarantees and upcoming payment dates. Avoid presenting only optimistic sales forecasts: distinguish committed receipts from hoped-for revenue. Ask which financial information an insolvency professional needs and who can obtain reliable accounts quickly.
Clarify who is instructing and what is urgent
Identify the legal entity, directors and any disagreement about continuing operations. Provide demands, proceedings and proposed transactions. ASIC encourages directors facing insolvency concerns to seek appropriate professional help. Ask for advice on your role and immediate decisions, including proposed payments or asset dealings, before assuming an informal arrangement resolves the problem.
Coordinate legal and restructuring work
The legal adviser, accountant and registered insolvency practitioner may have different responsibilities. Ask who assesses available procedures, who deals with creditors and who advises you personally. A staged engagement should explain the first assessment, its information requirements and what happens if the business position changes before a plan is agreed.
Use realistic options and clear decision ownership
A restructuring proposal is easier to assess when assumptions are explicit. Separate cash already available, committed funding and hoped-for future trading. Identify which creditors or stakeholders must agree and what happens if one refuses. Ask the adviser to explain who makes each decision and when the proposal must be reconsidered. A plan that depends on unconfirmed funding needs that uncertainty stated clearly. Keep personal guarantees and directors' individual interests visible so they are not lost inside advice directed only to preserving the business.
Compare the scope and cost of advice
Compare advisers against the commercial decision you need to make. Give each office the same transaction stage, documents and objective, then ask for a first-stage deliverable. A review, a negotiation and ongoing business advice are different services. Record which financial assumptions need your accountant's input and who will coordinate any specialist work before a commitment is made.
- Review and advice
- Ask for the issues identified, their practical effect and the decisions you must make. Confirm whether written advice or a marked-up document is included.
- Drafting and negotiation
- Ask who communicates with the other party, how revisions are priced and what happens if the deal changes materially during the work.
- Completion or implementation
- Confirm responsibility for approvals, signing, records and follow-up tasks. Ask which registrations, searches or external professional costs sit outside the legal fee.
Read the guide to consultation fees and written quotes, or use the provider comparison worksheet.
Illustrative situation · not a client result
What a focused enquiry looks like
A company expects a large customer payment but cannot meet current debts. Its director provides actual due dates and the uncertainty around that receipt, then requests urgent advice on the company's position and separate advice about a personal guarantee.
Your preparation checklist
Gather what you already have. Mark missing records and uncertain dates rather than guessing; ask the office what it needs before sending sensitive documents.
0 of 4 gathered · ticks reset when you leave this page.
A preparation aid, not confirmation that a legal requirement is complete.
A first enquiry you can adapt
I am [role] in a company facing [cash-flow or creditor issue]. We have [formal demand or proposed restructuring] and need advice before [date]. Can you assess immediate decisions and explain how legal, accounting and insolvency-practitioner roles should be coordinated?
Replace the bracketed details with accurate information. Keep the first message brief and confirm a secure channel for the full records.
Common questions about insolvency & restructuring
Is restructuring only for large businesses?
Ask which options may fit the entity and circumstances; eligibility, cost and suitability need assessment rather than assumptions based on business size.
Can I use the company adviser for my guarantee?
Ask explicitly whether that adviser acts for you personally and whether the interests are compatible.
Further reading and scope
ASIC: insolvency for directors
Australia; directors and corporate financial difficulty.
This is general preparation information, not an assessment of your legal position. Requirements, dates and available remedies depend on the facts and jurisdiction. The linked resource has the scope described above; it does not verify an individual provider or this guide.