• Company And Personal Debts

I Have Both Company and Personal Debts

Guidance and Support

Right now, you may feel as though there is nowhere to turn and that you are about to lose your house.

However, LemonAide is here to answer every question you may have about your company and personal debt – and how these debt positions may intertwine with each other.

With our extensive experience in navigating complex debt situations, we can provide you with the guidance and support you need to make informed decisions and regain control of your financial future.

LemonAide vs. Liquidator

Key Differences

LemonAide can offer specific answers to your questions, especially regarding how liquidation will affect your personal asset position.  Liquidators have a fiduciary duty to creditors and cannot provide specific advice on the impact of liquidation on your personal assets.

So, how is LemonAide different to a Liquidator? Put simply, a liquidator can’t offer specific answers to your questions, especially the question of how a liquidation will affect your personal asset position. This is because liquidators have a fiduciary duty to creditors. Before making any rash decisions or signing the dotted line, we recommend you chat with LemonAide first!

  • Personal and Company Debt

Case Study 1: Ben and Cheryl’s Story

The Situation

Ben ran a cleaning business in Sydney with a significant debt to the Australian Taxation Office (ATO).

The business was structured correctly, with only Ben as the director.

The Consequences

Ben had not lodged a Business Activity Statement (BAS) or a Superannuation Guarantee Charge (SGC) form in more than 2 years.

He became personally liable for some of the GST and all the outstanding PAYG and Superannuation, totalling around ¾ of the ATO’s total debt.

Ben received a lockdown Director Penalty Notice (DPN) for over $268,000 from the ATO.

The Solution

LemonAide helped Ben and Cheryl save the business, which was viable without the massive debt.

The original company was placed into liquidation.

Cheryl purchased Ben’s share of the current and future equity in the house, legally and ethically.

The business, business assets (primarily cars), and the family home were all saved.

If only Ben had known to lodge the company BAS and SGC forms on time, he then would have been able to save himself personally.

Case Study Cleaning Business

Case Study Farming Business

Case Study 2: Dennis’ Story

The Situation

Dennis was entrusted to maintain and grow a generational farming business with other family members.

Due to marital discord, the family had to purchase back the shares of an ex-partner, Sue, who arranged personal guarantees from each family member.

The family and the company didn’t pay the entire agreed amount to Sue, despite her upholding her part of the agreement.

The Mistake

Sue petitioned to put the family’s farming company into liquidation and bankrupted each family member who had personally guaranteed an amount to be paid to her.

Dennis avoided acknowledging the bankruptcy for over 9 years, which could have led him out of the situation 3 times over if he had lodged his paperwork with the bankruptcy trustee.

The Outcome

Dennis still needed to go bankrupt to make a release application, even though the debt could be paid off through parcels of land held in the name of other family members.

The time of bankruptcy doesn’t begin until documents are lodged and accepted by the Official Receiver (AFSA).

By avoiding this task, individuals may remain in bankruptcy indefinitely.

Book a Consultation with LemonAide Now

Frequently Asked Questions

LemonAide provides personalized guidance and support, helping you understand how your company and personal debts may intertwine and offering strategies to manage both effectively.

Contact LemonAide for a consultation to explore options that can protect your personal assets while addressing your debt situation.

Unlike liquidators, LemonAide focuses on your interests, providing specific advice on how debt management or liquidation impacts your personal assets.

Liquidation primarily affects company assets, but depending on your situation, personal assets could be at risk. LemonAide can provide guidance on minimizing this risk.

Consulting LemonAide can provide you with a comprehensive understanding of your options and the potential consequences, helping you make informed decisions.

Yes, LemonAide can help negotiate with creditors to create manageable repayment plans and potentially reduce debt amounts.

Company debts can impact personal finances, especially if personal guarantees are involved. LemonAide can help disentangle these debts and protect your assets.

LemonAide offers tailored strategies that include budgeting, debt restructuring, and asset protection to ensure sustainable financial health.

Customer Feedback

Lemonaide Favicon

“Nathan was compassionate and professional whilst helping my husband and I save the business we built together. He made a stressful and emotional time so much easier. We would highly recommend anyone to Nathan as we know he will look after each and every one of his clients without judgement.”

Lemonaide Favicon

“The strategies and advice Nathan gave me was nothing short of amazing. He explained things in simple terms for me to understand. I knew straight away he had my interest at heart first and foremost. It was so refreshing to deal with someone that was helpful and willing to go the extra mile for me.”