Employers are being warned that the days of expecting taxpayers to cover staff entitlements for failed businesses may soon be over, with company bosses potentially being held legally liable for the business’ unpaid dues.

Brisbane employment law expert Michael Coates says employers need to know that under proposed new laws, unpaid wages from a collapsed business could be recovered from related business entities that are not insolvent in circumstances where it is just and equitable (that is, “fair”) to do so. However what exactly is “fair” is yet to be determined.

Always deal with the house before going bankrupt (or else do it shortly after).

Far too often as solicitors we find ourselves wishing the client had come and seen us sooner.

This scenario is prevalent in bankruptcy. When a person first goes bankrupt, but they still own a house (or half a house), there’s usually very little equity. Discussions are sometimes held with the bankruptcy trustee (trustee) about buying the equity or getting the trustee to disclaim any interest in the house (meaning that the trustee won’t deal with it further).