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NSW Can ATO Bankrupt Me When I Live Overseas?

Discussion in 'Debt and Bankruptcy Law Forum' started by jac99, 25 October 2015.

  1. jac99

    jac99 Member

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    I moved overseas 2.5 years ago. My business, which I am the Director of, operated in Australia with one staff member for another 6 months and then ceased operating. The only creditor the company has is the ATO which has been an accumulating debt over some years (around $70k inc.interest). PAYG returns were lodged up until my employee left, and superannuation was paid. The company has no assets.

    I have just discovered via the ASIC website that the ATO has issued a winding up order for my company which has been ratified by the court.

    What happens now? Will they proceed to bankrupt me personally? I live overseas and have no property or assets in Australia.
     
  2. Sophea

    Sophea Well-Known Member

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    Hi jac99,

    Winding up a company is different to bankruptcy of an individual. The company has a separate legal identity and therefore is responsible for its own debts. The only way a creditor or ASIC can come after a director for unpaid debts of the company is if the company was trading while insolvent or in breach of other director's duties. Therefore it only concerns your company, and not you as a director. The documents for the winding up were likely served at your registered company address.
     

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