What Directors will be faced with in 2021

? End of the COVID insolvent trading moratorium on 31 December 2020. This means from 1 January 2021, at law, Directors will be personally exposed if they are trading whilst insolvent.

? Creditor statutory demands will revert to the pre-COVID regime, in that creditors can seek to wind up a debtor 21 days after issuance. This means once again, creditors will be seeking recovery of their debts via the Courts.

? Changes to insolvency laws from 1 January 2021. These proposed changes in laws are only focused on small businesses who meet certain criteria (eg. you must be up to date with your superannuation), New debt restructuring legal processes proposed still require the approval of your creditors.

? Banks/financiers will seek to recover loans which continue to be in default, after loan deferrals provided to customers in 2020.

? In NSW, regulations supporting the Landlord's COVID Code of Conduct will expire on 31 December 2020. Landlords will be looking to recoup their losses experienced this year.

? JobSeeker will be reduced to $150 per fortnight from 1 January 2021, and totally abolished after 31 March 2021.

For Directors and their businesses, things are unfortunately going to get worse before they get better. We are already in a recession now. Once the Government's assistance measures cease next year, this will perpetuate the effects of the recession.

Plan ahead for 2021. Think ahead and face the reality of the New Year now. Seek professional advice from Hilton Bradley Lawyers early. We provide the first consultation free of charge, without obligation