Suspected past insolvent trading needs a factual timeline

Looking back can make everything feel obvious

You are worried the company may have been unable to pay debts for months. Do not try to settle the legal question from memory or one overdue invoice. Seek qualified advice promptly and preserve the records showing what the company owed, paid and expected at the relevant times. The present response and the historical assessment both need attention.

Identify useful dated information

Gather bank records, creditor reports, cash forecasts, finance correspondence and significant payment discussions. Keep the versions available at the time as well as later updates. Note when important information reached the directors. Avoid treating today's knowledge as if it was necessarily known earlier; the adviser needs an accurate chronology, including gaps and uncertainty.

Understand why ongoing information matters

ASIC says directors need continuing awareness of the company's financial position. Give the adviser the records that show that position and how it was monitored. Do not assume an annual set of accounts answers every question about a particular month. Equally, do not alter an earlier report to make it agree with a conclusion reached only after events unfolded.

Source: ASIC: Insolvency for directors

Use a neutral hypothetical example

Imagine a company expecting a large customer receipt in March and learning in April that it was disputed. The dates, underlying correspondence and other financial circumstances may matter to the assessment. The example does not establish when insolvency began or whether a defence exists. It shows why the information sequence needs to be preserved rather than compressed into one retrospective statement.

Keep facts separate from legal conclusions

Describe events such as missed payments, failed funding proposals and new commitments in plain terms. Ask the lawyer or insolvency specialist to assess their significance. Avoid labelling every transaction unlawful or assuming a later payment cures earlier exposure. Relevant law, evidence and circumstances need qualified consideration, and significant correspondence should be handled with appropriate advice.

Address current commitments at the same time

Tell the adviser what decisions are imminent and what debts remain unpaid. Do not postpone present advice until the historical file is perfect. Supply available records and identify missing material honestly. A reliable chronology helps the assessment, but its purpose is informed action; it is not a substitute for dealing with the company's current financial position.