I think my company is insolvent. What do I do today?

Treat it as a solvency test

Insolvency is not a mood or a rough patch. The legal test is whether the company can pay all its debts as and when they become due and payable. If wages, suppliers, tax or hire instalments are already missing, treat that as a warning to test the numbers now, not next week. ([legislation.gov.au](https://www.legislation.gov.au/C2004A00818/2025-12-19/2025-12-19/text/original/pdf/1?utm_source=openai))

That matters because the delay changes your choices. ASIC says directors should get accounting or legal advice as early as possible and should not assume things will improve by themselves. If the company is insolvent, ASIC also says not to let it incur further debt unless a real restructuring, refinancing or recapitalisation path exists. ([asic.gov.au](https://asic.gov.au/regulatory-resources/insolvency/insolvency-for-directors/?utm_source=openai))

List every debt with its due date

Start one list and do not tidy it up. Put every debt on the page: trade creditors, wages, super, BAS, PAYG, rent, equipment finance, loan repayments and any judgment or demand already on foot. Next to each item, write the amount, the due date and whether payment is already late or still pending. ([asic.gov.au](https://asic.gov.au/regulatory-resources/insolvency/insolvency-for-directors/what-to-do-if-your-company-is-insolvent/?utm_source=openai))

This list shows whether you have a temporary squeeze or a wider problem. ASIC flags unpaid creditors, arrears outside normal terms, increasing debt, poor cashflow and disorganised records as warning signs. If you cannot see the whole position on one page, you probably cannot see the whole risk either properly. ([asic.gov.au](https://asic.gov.au/regulatory-resources/insolvency/insolvency-for-directors/?utm_source=openai))

Source: Official guidance

Count only the cash you can reach

Now do the same for money in. Use the bank balance, cleared receipts and amounts you can realistically collect in the next few days. Leave out verbal promises, disputed invoices and jobs that might still collapse before the money lands. A hoped-for payment is not cash until it clears fully. ([asic.gov.au](https://asic.gov.au/regulatory-resources/insolvency/insolvency-for-directors/?utm_source=openai))

If a debtor says the money is coming, record the date and the reason you believe it, but keep it separate from funds already available. The point is to test whether the company can meet debts from real cash, not from optimism. If the answer is no, the solvency question is getting sharper. ([legislation.gov.au](https://www.legislation.gov.au/C2004A00818/2025-12-19/2025-12-19/text/original/pdf/1?utm_source=openai))

Stop new debt and document the decision

Once the picture is clear, stop taking on new debt the company cannot pay. That means no fresh orders, no extra subcontractor commitments and no stretching finance just to buy another week. ASIC is blunt: if the company is insolvent, do not allow it to incur further debt unless a proper rescue path exists. ([asic.gov.au](https://asic.gov.au/regulatory-resources/insolvency/insolvency-for-directors/?utm_source=openai))

Write down what you decided, when you decided it and what facts you relied on. Keep bank statements, aged payables, debtor reports, emails and any advice together. If you speak to an accountant, lawyer or liquidator, note the name, date and the core advice. Good records make the timeline clearer later. ([asic.gov.au](https://asic.gov.au/regulatory-resources/insolvency/insolvency-for-directors/?utm_source=openai))

Choose the next practical step today

By the end of today, compare the debt list with the cash list and decide what must stop, what must be paid first and what needs proper advice. ASIC says the main corporate insolvency paths are restructuring, voluntary administration, liquidation and receivership, but the right one depends on the facts, not on guesswork. ([asic.gov.au](https://www.asic.gov.au/regulatory-resources/insolvency?utm_source=openai))

If your numbers suggest the company cannot pay its debts as they fall due, call CRP today about insolvency services. CRP coordinates independent qualified professionals who can review the position and help you move in an orderly way. This information is general only and is not legal advice for your circumstances. ([asic.gov.au](https://asic.gov.au/regulatory-resources/insolvency/insolvency-for-directors/?utm_source=openai))