Company broke but you’re not? Check what can still reach you

Your company may owe the debt, but that is not the full picture

If the company is under strain, it is tempting to assume the corporate structure keeps you out of reach. That can be true for ordinary trading debts, but it is not a complete shield. ASIC says directors can face personal exposure when a company cannot pay its debts as they fall due, and a creditor, ASIC or a liquidator can take action for insolvent trading. ([asic.gov.au](https://www.asic.gov.au/regulatory-resources/insolvency/insolvency-for-directors?utm_source=openai))

That is why the question is not whether the business looks busy. It is whether the company can meet its obligations on time. ASIC also warns directors not to let the company keep trading if there is a real risk of insolvency, and says early advice matters as soon as financial difficulty appears. ([asic.gov.au](https://www.asic.gov.au/regulatory-resources/insolvency/insolvency-for-directors?utm_source=openai))

Start with every guarantee you have signed

Many directors lose track of old credit forms, finance papers and lease documents. Those documents can matter later if they include a personal guarantee. ASIC’s director guidance says to understand the company’s financial position and to check the obligations that may still sit behind the company name, especially where you have signed personally. ([asic.gov.au](https://www.asic.gov.au/regulatory-resources/insolvency/insolvency-for-directors?utm_source=openai))

Do a document sweep today. Pull loan agreements, equipment finance, trade credit forms and property leases, then note which ones were signed by you personally. The practical aim is simple: know which debts are company debts only, and which ones may follow you if the company cannot pay. ([asic.gov.au](https://www.asic.gov.au/regulatory-resources/insolvency/insolvency-for-directors?utm_source=openai))

Source: Official guidance

Check the tax file before the ATO turns up the pressure

Tax lodgements can become a personal issue faster than many owners expect. The ATO says director penalty notices can apply to unpaid PAYG withholding, GST and super guarantee charge, and that penalties can be recovered from directors personally after the notice period. ([ato.gov.au](https://www.ato.gov.au/api/public/content/0-fe8e0a8d-144c-4063-b156-8dcb8d9d16d2?utm_source=openai))

That makes the lodgement record just as important as the debt balance. Check whether BAS, super and related returns are up to date, because late or missing reporting can change the options available to you. If the file is behind, do not wait for the formal notice to force the issue. ([ato.gov.au](https://www.ato.gov.au/api/public/content/0-fe8e0a8d-144c-4063-b156-8dcb8d9d16d2?utm_source=openai))

If you owe the company money, treat that as a real exposure

Personal exposure does not only run one way. If you have drawn money from the company, paid personal expenses through it, or left a director loan account outstanding, that balance may matter when the company’s affairs are reviewed. ASIC says liquidators investigate the company’s property and affairs, including assets that may be recovered for creditors. ([asic.gov.au](https://www.asic.gov.au/for-business-and-companies/companies/company-deregistration-and-winding-up/wind-up-an-insolvent-company?utm_source=openai))

So check the company ledger and your own records now. If there is a loan account or reimbursement balance, confirm the figure is right before someone else does. This is not the time to rely on memory, because the numbers can change the advice you need and the way the file is handled. ([asic.gov.au](https://www.asic.gov.au/for-business-and-companies/companies/company-deregistration-and-winding-up/wind-up-an-insolvent-company?utm_source=openai))

Do the three checks today, then get advice before it worsens

The practical move is to slow the damage before the position gets worse. List every guarantee, confirm tax lodgements are current, and check whether you owe the company money through a loan account or drawings. ASIC says directors should seek help early and not assume things will fix themselves. ([asic.gov.au](https://www.asic.gov.au/regulatory-resources/insolvency/insolvency-for-directors?utm_source=openai))

If those checks show risk, call CRP today about insolvency services. CRP coordinates independent qualified professionals who can review the pressure points and help you decide the next step in an orderly way. This information is general only and is not legal advice for your circumstances. ([asic.gov.au](https://www.asic.gov.au/regulatory-resources/insolvency/insolvency-for-directors?utm_source=openai))