How to Spot Dodgy SBR Operators (and Find Good Ones)

TL;DR: Most SBR practitioners are legitimate and ASIC-registered, but red flags include guaranteeing plan approval (the real rate is 87%), hidden fees (median practitioner fee is $16,137), and pressure tactics. Always verify ASIC registration, get written fee quotes, compare 2-3 practitioners, and check for ARITA/CPA memberships.

Small Business Restructuring can save your business. But like any industry, there are good operators and bad ones.

Here’s how to tell the difference — and protect yourself from making an expensive mistake.

Most SBR Practitioners Are Legitimate

The vast majority of restructuring practitioners are:

Properly licensed
Professionally competent
Acting in good faith

SBR is regulated by ASIC. Practitioners must hold appropriate registrations. There are professional standards and oversight.

But that doesn’t mean everyone is equally good, or that there aren’t occasional bad actors.

Red Flags When Choosing an SBR Practitioner

1. Guaranteeing Outcomes

Red flag: “I guarantee your plan will be approved”

No one can guarantee this. Creditors vote. The ATO makes independent decisions. While 87% of plans are approved, no legitimate practitioner can promise specific outcomes.

What good practitioners say: “Based on similar cases, approval is likely, but I can’t guarantee creditor votes.”

2. Pressure Tactics

Red flag: “You need to sign up today or you’ll miss your chance”

SBR has been available since 2021 and isn’t going anywhere. There’s no artificial urgency (unless you have a genuine deadline like a DPN).

What good practitioners do: Give you time to consider, compare options, and make an informed decision.

3. Vague or Hidden Fees

Red flag: “We’ll sort out the fees later” or unexplained additional charges

SBR costs should be transparent. You should know the restructuring phase fee, plan administration fee, and what’s included before committing.

What good practitioners provide: Written fee quotes with clear breakdowns of what’s included.

4. No ASIC Registration

Red flag: Can’t provide their ASIC registration number or isn’t searchable on ASIC’s registers

Restructuring practitioners must be registered with ASIC. This is a legal requirement, not optional.

What to check: Search their name on ASIC’s registered liquidators database. They should appear with current registration.

5. Recommending Dodgy Strategies

Red flag: Suggestions to hide assets, falsify documents, or mislead creditors

This is illegal. It can result in criminal charges. Any practitioner suggesting this is not someone you want to work with.

What good practitioners do: Keep everything legal and above board. Full disclosure, honest dealing.

6. No Interest in Your Situation

Red flag: Ready to sign you up without understanding your business

Good practitioners need to assess your situation before proceeding. If they’re not asking questions about your business, debts, and circumstances, something’s wrong.

What good practitioners do: Conduct a thorough initial assessment, ask probing questions, understand your specific situation.

7. Too Good to Be True

Red flag: “We’ll get you 90% debt reduction guaranteed for only $5,000”

If the offer seems unrealistically good, it probably is. SBR has typical costs and outcomes for a reason.

Typical reality: $15,000-$30,000 costs, 60-80% debt reduction, 87% approval rate.

8. Pushing When SBR Isn’t Right

Red flag: Recommending SBR even when you’re clearly ineligible or it’s not appropriate

Sometimes SBR isn’t the right option. A good practitioner will tell you that. One pushing you into SBR regardless has other motives.

What good practitioners do: Honestly assess your eligibility and whether SBR is your best option.

How to Find Good SBR Restructuring Practitioners

Check ASIC Registration

Go to ASIC Connect: https://connectonline.asic.gov.au
Search for registered liquidators
Verify their registration is current
Check for any disciplinary actions

Look for Experience

Good indicators:

Years of insolvency experience
Number of SBR cases handled
Professional memberships (ARITA, CPA, CA)
Published content showing expertise
Testimonials or references (with appropriate privacy)

Get Multiple Quotes

Speak with 2-3 practitioners before deciding:

Compare fees and what’s included
Assess communication style
Evaluate their understanding of your situation
See who you feel most comfortable with

Ask the Right Questions

When speaking with practitioners, ask:

“How many SBR cases have you handled?” Look for meaningful experience.
“What’s your typical approval rate?” Should be close to or above the 87% industry average.
“What’s your total fee, and what does it cover?” Should be clear and in writing.
“What happens if the plan isn’t approved?” Understand the downside scenario.
“Can I speak with a previous client?” Good practitioners can arrange this (with client consent).
“What’s your communication approach?” Know what to expect during the process.

Trust Your Instincts

If something feels off:

The practitioner is evasive
They can’t answer basic questions
They’re pushy or pressuring
You don’t feel heard

…trust those feelings and look elsewhere.

Professional Bodies and Standards for SBR Practitioners

Legitimate practitioners typically belong to:

ARITA (Australian Restructuring Insolvency & Turnaround Association)

The peak professional body for restructuring practitioners. Members must meet professional standards.

CPA Australia / Chartered Accountants ANZ

Many practitioners are also qualified accountants with professional obligations.

Law Societies

Some practitioners are also lawyers with legal professional obligations.

Membership in these bodies adds accountability and professional standards.

What to Expect in an SBR Initial Consultation

A good initial consultation should:

Be free or low-cost
Cover your eligibility
Explain how SBR would work for your situation
Provide rough cost estimates
Answer your questions honestly
Not pressure you to commit

If the consultation feels like a high-pressure sales pitch, that’s a warning sign.

After You Engage an SBR Practitioner

Even after choosing a practitioner, watch for:

Good Signs

Regular communication
Clear explanations
Responsive to questions
Progress on timeline
No surprises

Warning Signs

Goes quiet for long periods
Unexpected additional fees
Missed deadlines without explanation
Pressure to make questionable decisions
Difficulty reaching them

What to Do If Your SBR Practitioner Acts Improperly

If you believe a practitioner has acted improperly:

1. Document Everything

Keep records of all communications, fees paid, and issues encountered.

2. Raise Concerns Directly

Sometimes issues are misunderstandings. Raise your concerns with the practitioner first.

3. Complain to ASIC

ASIC oversees registered liquidators. Serious misconduct can be reported to them.

4. Contact Professional Bodies

If they’re members of ARITA, CPA, etc., these bodies have complaints processes.

5. Seek Legal Advice

For serious issues, consider consulting a lawyer about your options.

The Bottom Line

Most SBR practitioners are legitimate professionals doing good work. But due diligence matters:

✅ Verify ASIC registration ✅ Get written fee quotes ✅ Compare multiple practitioners ✅ Ask questions and expect clear answers ✅ Trust your instincts ✅ Don’t be pressured

SBR can be transformative for your business. A good practitioner makes the process smooth and effective. Take the time to find the right one.

Your business is worth protecting — from debt, and from bad advice.