insolvency & the insolvencey act


i am in, or nearing, financial distress
in my business


I want to ensure I never get into
financial problems in my business

Fervor makes dealing with insolvency and liquidation less stressful

Knowing your business is struggling can be a stressful thing and there are often many things to deal with when you are in this situation, it all starts with understanding your obligations and options under the insolvency act. As a licensed insolvency practitioner, we can help make the liquidation process and little less stressful with tailored practical solutions to help you through.

Our team have years of experience in both personal insolvency and company insolvency and liquidation in NZ and assess your situation without judgement. If you need forensic accounting to help you sort out any financial irregularities or you want help with company recovery, or if you are insolvent, our team can assist.

Book a consultation to discuss your business insolvency situation or contact us to discuss our other financial services.

inolvency kapiti coast, wellington & new zealand

The Insolvency Act – Types of Insolvent Administrations
That we can help you with

Voluntary Liquidations

This happens when the directors and shareholders of a company realise that the company is insolvent. A liquidator is appointed by way of a Shareholders Resolution which must have at least 75% shareholder support. The liquidator then takes control of the company’s assets and record to bring the business to a close.

Court Liquidations

A Court appointed liquidation usually happens if a creditor, or applicant applies to the court. This course of action is usually followed in other attempts to recover a debt have been unsuccessful. If you receive a notice to liquidate you can still appoint your own liquidator – if you act quickly.

solvent liquidations

This happens when a company ceases trading and is no longer required. A liquidator is appointed via a Shareholders Resolution and can also be achieved via a Directors Resolution under the short form method in the Companies Act 1993.


A receivership happens when a creditor with a registered security interest over some or all of the company’s assets wants to realise assets to repay the debt. A Receiver is appointed and can run aspects of the company’s business. This includes determining the on-going viability of the business, dealing with staff movements, selling assets and managing day to day operations. The Receiver aims to secure assets and convert them to cash to repay the creditor. 

company & Personal Insolvency Compromises

A Personal insolvency proposal is governed by Part 5 of the Insolvency Act 2006 and is an alternative to bankruptcy. The proposal is a formal agreement that allows an insolvent person to settle their personal debts and obligations, without being declared bankrupt.

The proposal must be realistic and must offer creditors a better outcome than if you became bankrupt. In this proposal you agree to fully settle your personal debts and show how this will be done – for example in agreed instalments.

A Provisional Trustee is appointed to manage the insolvency proposal.  The Provisional Trustee can help prepare a proposal or you can appoint a lawyer to do so. A creditor meeting is held and the proposal must have majority support among the creditors to be accepted. The proposal then needs to be approved by the Court.

do you need our help?

Do any of these statements reasonate with you?

in financial distress

Are you struggling to pay your bills on time? Falling behind in IRD payments?

Running low on cashflow

Do you feel like you have more outgoings than you can manage? Perhaps your customers aren’t paying their bills on time?

feel like you're in a constant struggle

Do you feel like you are in a rat race of continual financial struggles?

you may not need to become insolvent

Just because you are in financial distress, does not mean you need to become insolvent.

Let's have a free half an hour consultation to see if there is a way we can help your financial position and maximise the value of your business.

Our Experts Waiting For You

Request A Call Back

Experienced team

Being a licensed insolvency practitioner, our dedicated team of experts have many years of experience helping businesses of all sizes get control of their financials and out of financial distress.

respect & empathy

We listen to your situation, with empathy and understanding to provide individual advice to you and your business. We treat all enquiries with dignity and respect.

individual plans

We know that this isn't a "one solution" industry. As such, we take an individual case approach to even the most complex of financial issues, to ensure we take the most appropriate course of action for you and your business.

Free 30 minute consultation