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  • Getting the right advice?

    10 November 2020

    Many businesses are being affected by challenging economic conditions. You may be thinking about pausing, changing, or permanently closing your business.

    When making these decisions, it's important to get advice from a registered professional. That could be an accountant, lawyer or registered insolvency adviser.

    Be wary of advisers who may recommend inappropriate or illegal actions.

    Untrustworthy or unregistered advisers may suggest things such as removing assets before a business is wound up.

    Watch out for red flags including:

    • people you don't know cold calling with advice
    • unsolicited letters, emails, or phone calls after you've been through court action with a creditor
    • advice to transfer assets to a third party without payment
    • refusal to provide advice in writing
    • suggesting they have a sympathetic liquidator who will protect your personal interests and assets
    • advising you withhold certain records from the bankruptcy trustee or liquidator
    • suggest you provide incorrect information to authorities
    • suggesting they deal with the liquidator or trustee on your behalf.

    If you follow inappropriate or illegal advice, you put yourself at risk. You could receive a fine, criminal conviction or even a jail term.

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