AI Prompt Library

Insolvency Law prompts for Australian lawyers

These prompts are designed for AU insolvency practitioners acting for liquidators, administrators, trustees in bankruptcy, creditors, and directors. Copy any prompt, replace placeholders with your matter facts, and run it.

In short

A curated library of 25 AI prompts for Australian insolvency lawyers. Each prompt is grounded in the Corporations Act 2001, the Bankruptcy Act 1966, and current Federal Court insolvency practice. Use them with Quillio for restructuring, recovery, and appointment work.

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Research

Research prompts (5)

Research unfair preferences

Prompt

Research the current test for unfair preferences under section 588FA of the Corporations Act. Cover the running account principle, the peak indebtedness rule, and the Badenoch appeal implications.

Example use: A liquidator assessing preference claims against a supplier paid in the 6 months before appointment.

Research insolvent trading defences

Prompt

Research the current approach to defences to insolvent trading under section 588H and the safe harbour in section 588GA. Cite recent Federal Court authority.

Example use: Defending a director facing an insolvent trading claim after the company's collapse.

Research voidable transactions

Prompt

Research the voidable transaction provisions in Part 5.7B of the Corporations Act. Cover uncommercial transactions, unreasonable director-related transactions, and creditor-defeating dispositions.

Example use: For a liquidator investigating pre-appointment transactions in a phoenix suspicion case.

Research DOCA binding non-consenting creditors

Prompt

Research the court's approach to approving or setting aside a Deed of Company Arrangement under Part 5.3A. Cover section 445D termination applications and dissenting creditor rights.

Example use: A creditor considering an application to terminate a DOCA that compromises their claim.

Research bankruptcy annulment grounds

Prompt

Research the grounds for annulment of a bankruptcy under section 153B of the Bankruptcy Act. Cite the current Federal Court and Federal Circuit authority.

Example use: A bankrupt seeking annulment on the ground the sequestration order ought not to have been made.

Drafting

Drafting prompts (5)

Draft a statutory demand

Prompt

Draft a creditor's statutory demand under section 459E of the Corporations Act. Creditor: [details]. Debtor: [details]. Debt: [$amount]. Attach an affidavit compliant with the current rules.

Example use: A supplier pursuing a $200,000 undisputed invoice from a corporate customer.

Draft an application to set aside a statutory demand

Prompt

Draft an application under section 459G to set aside a statutory demand. Grounds: genuine dispute / offsetting claim / defect. Include the supporting affidavit outline.

Example use: A debtor company served with a statutory demand where the underlying debt is disputed.

Draft a winding up application

Prompt

Draft an application to wind up a company in insolvency under section 459P. Applicant creditor: [details]. Basis of insolvency: [failed statutory demand/other]. Orders sought: [details].

Example use: A creditor applying to wind up a company that has failed to comply with a statutory demand.

Draft a letter of demand to a director

Prompt

Draft a letter of demand to a director for insolvent trading under section 588G. Facts: [details]. Include the basis of liability and the sum claimed, plus a deadline for response.

Example use: A liquidator pursuing a director personally for debts incurred after the company became insolvent.

Draft a creditor's proof of debt

Prompt

Draft a proof of debt for a creditor in an external administration. Creditor: [details]. Debt: [$amount]. Nature: [trade/loan/other]. Include particulars and supporting documents.

Example use: A landlord lodging a proof of debt for unpaid rent and make-good costs in a liquidation.

Review

Review prompts (5)

Review a director's report as to affairs

Prompt

Review this Report as to Affairs (RATA). Identify any inconsistencies with known facts, undisclosed assets or liabilities, and any red flags for further investigation.

Example use: A liquidator reviewing the RATA provided by a director at appointment.

Review a proof of debt

Prompt

Review this proof of debt lodged in a liquidation. Check the basis of the claim, any set-off, the quantum, and whether it should be admitted, reduced, or rejected.

Example use: A contingent guarantee claim lodged by a related-party creditor.

Review a DOCA proposal

Prompt

Review this DOCA proposal. Analyse the return to creditors compared with liquidation, the funding source, and any provisions that favour related parties.

Example use: A creditor considering whether to vote in favour of a DOCA offering 25c in the dollar.

Review a pre-insolvency advisory engagement

Prompt

Review this pre-insolvency advisory arrangement for any indicators of illegal phoenix activity. Identify creditor-defeating dispositions and any breach of director duties.

Example use: Investigating transactions in the lead-up to appointment where assets were transferred to a newco.

Review a claim for equitable set-off

Prompt

Review the claim for equitable set-off under section 553C. Identify whether there is the required mutuality and connection, and assess the likely success of the set-off.

Example use: A trade creditor asserting set-off against an unfair preference claim brought by a liquidator.

Client comms

Client comms prompts (5)

Explain voluntary administration

Prompt

Draft a plain-English explanation of voluntary administration for a director considering appointment. Cover the process, the director's obligations, and likely outcomes.

Example use: An initial consultation with a director of a struggling business considering their options.

Explain bankruptcy consequences

Prompt

Draft a plain-English letter to a client explaining the consequences of bankruptcy, including the period, restrictions, and effect on assets and income.

Example use: A client considering voluntary bankruptcy after mounting personal debts.

Explain safe harbour

Prompt

Draft a plain-English explanation of the safe harbour from insolvent trading in section 588GA, including the eligibility requirements and the practical steps to access it.

Example use: A director navigating financial difficulty and considering a restructuring plan.

Letter on preference claim

Prompt

Draft a plain-English letter to a creditor who has received a preference claim demand. Explain the liquidator's position, the running account defence, and next steps.

Example use: A supplier receiving their first preference claim letter from a liquidator.

Explain small business restructuring

Prompt

Draft a plain-English explanation of the small business restructuring process, including eligibility, the role of the small business restructuring practitioner, and typical outcomes.

Example use: A small business owner with $800,000 in debts considering restructuring.

Strategy

Strategy prompts (5)

Strategy for contesting a preference claim

Prompt

Develop a strategy for contesting this preference claim. Facts: [details]. Consider running account, good faith, and set-off defences.

Example use: Defending a preference claim where the creditor supplied goods on running account terms for 12 months.

Strategy for recovery against directors

Prompt

Develop a recovery strategy against directors for [claim type]. Facts: [details]. Identify asset position, litigation risk, and enforcement options.

Example use: Pursuing a director personally for insolvent trading where the director holds significant personal assets.

Strategy for a contested winding up

Prompt

Develop a strategy for contesting a winding up application. Facts: [details]. Consider solvency evidence, genuine dispute arguments, and any procedural defences.

Example use: Defending a winding up application where the company has temporary cash-flow issues but is balance-sheet solvent.

Strategy for a phoenix investigation

Prompt

Develop an investigation strategy for suspected illegal phoenix activity. Facts: [details]. Identify the transactions to examine, the parties to investigate, and the likely causes of action.

Example use: A liquidator investigating a company whose assets were transferred to a newco weeks before appointment.

Strategy for a cross-border insolvency

Prompt

Develop a strategy for a cross-border insolvency matter involving [jurisdictions]. Consider recognition under the Cross-Border Insolvency Act and the practical coordination issues.

Example use: An Australian liquidator seeking recognition of their appointment in the UK to access overseas assets.

Use with Quillio

Run these prompts grounded in AU law

Quillio is built for Australian insolvency practice — every research output cites current Corporations Act, Bankruptcy Act, and Federal Court authority. See /practice-areas/insolvency-lawyers for details, or start a free trial at /free-trial to use these prompts on your own matters.

These prompts are templates — always verify outputs against source material and current legislation before relying on them in client matters.

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