General Questions
Why is our motto "Plain Talk - Straight Answers - Fast Results"?
Most people interested in insolvency estates are not industry professionals, and do not want to learn industry jargon to understand what we are saying. We want to speak to people in plain language so that everyone understands what we are saying; we want to give straight forward answers to questions whenever possible; and get results as fast as practical.
What is the difference between liquidators, trustees etc.?
A registered liquidator is someone, usually a qualified accountant, registered with the Australian Securities & Investments Commission (ASIC). They can be appointed in all non-court appointed liquidations, can act as a voluntary administrator or as a controller of company property.
An official liquidator is a more experienced registered liquidator who is registered with, and can be appointed by, the Courts to all types of corporate insolvency matters.
A registered trustee is someone registered with the Insolvency & Trustee Service Australia (ITSA) to take all forms of appointments under the Bankruptcy Act.
A certified fraud examiner is a member of the Association of Certified Fraud Examiners (ACFE).
Who works on the files at Worrells?
Each file is controlled in an insolvency team who are all accountants. Each team consists of a partner, a manager, a supervisor and a file accountant. This four tiered approach ensures that the work is:
(1) conducted by a person with the level of experience that is appropriate to conduct that type of work (cost control); and
(2) is supervised and overseen by a more experienced team member (quality control).
Our approach is one of "affordable quality".
What fees are charged to insolvent estates?
All practitioners charge fees based on their own scales of hourly rates for each level of their employees. Our rates are called our Solvency Management Rates and are set out on this web site.
How are fees approved?
The most common way for fees to be approved is by a resolution of the creditors on that file. The Courts also have authority to approve fees if the creditors do not do so. In bankruptcy matters, 85% of the old IPA rate is automatically approved under the regulations to the Bankruptcy Act. The balance has to be approved by creditors.
To assist creditors determine whether our fees on a file are appropriate, we make all of our fee information to creditors before and at the meeting.
How do you know if you are insolvent?
The definitions of insolvency are set out in the Corporations Act for companies and the Bankruptcy Act for individuals. These two definitions are almost identical. Essentially, if you cannot pay all of your debts as they become due for payment, you are likely to be insolvent. Debts that are not due for payment (long term loans) are generally not used to determine insolvency. If you believe that you are or may be insolvent, you should seek your accountant's or solicitor's advice.
How are creditors kept informed about a file?
Reports on the progress of files are mail, and where possible emailed, to creditors on a regular basis. Some of these reports have to be sent at particular times due to the requirements of the relevant Act, others are issued when certain events occur.
All past reports on a file can be found on this web site. The File Information page of this web site also contains information on all of our current file, and this information is updated daily. If our reports do not deal with an issue, contact us. The relevant file accountant's and supervisor's names and direct telephone numbers are shown on every advice and report and on this web site.
Do I need to an ABN when I lodge a Proof of Debt?
If you are required to have an ABN you must provide it on the Proof of Debt. If you do not have an ABN you should advise us of that too. External administrators must withhold tax from dividend payments when an ABN is not supplied by a creditor, or where that creditor does not advise the external administrator that they do not have an ABN.
Do employees need to provide Tax File Numbers (TFN) with their Proof of Debt?
Employees should provide TFNs with their Proof of Debts. External administrators must withhold tax from dividend payments when a TFN is not supplied by a employee.
Disclaimer
The enclosed information is of necessity a brief
overview and it is not intended that readers should rely
wholly on the information contained herein. No warranty
express or implied is given in respect of the information
provided and accordingly no responsibility is taken by
Worrells or any member of the firm for any loss resulting
from any error or omission contained within this
fact sheet.
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Last updated: 10.1.2008