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Options: From the date you receive the statutory demand you have 21 days to respond to it by: a. Paying the debt; b. Reaching some resolution with the creditor; or c. Bringing an application to set aside the statutory demand. Preliminary steps: 1. You should firstly confirm the date the statutory demand was received and … Read more

Settling your debts – formal arrangement or informal arrangement?

It’s commonplace in business to find yourself experiencing cash flow problems or dealing with debtors who are. Perhaps the tardiness of your debtors is preventing you from paying your own creditors on time? Whether you are the debtor or the creditor in scenario will ordinarily determine whether you would benefit from formalising a payment arrangement … Read more

14 Indicators of Insolvency

  The list comes straight out of ASIC v Plymin, Elliott & Harrison [2003] 21 ACLC 700 and has been quoted a further 29 times in subsequent cases and is the checklist that almost every liquidator goes off. 1. Continuing losses. 2. Liquidity ratios below 1. 3. Overdue Commonwealth and State taxes. 4. Poor relationship with … Read more

How to Lodge a Caveat

Where there is a dispute over property a caveat can be lodged to restrict other parties from dealing with the property. It is essential  that the party registering the caveat have a direct interest in the property. Equally, the grounds claimed for lodging a caveat must be of a type recognized by the courts. You cannot … Read more

Accountants and Unpaid Fees and How to Avoid Getting Caught Short

Part and parcel of being advisers in insolvency matters is dealing with unpaid accountants. It is surprising the number of accountants who do not have properly formed engagement documents. Without a proper letter of engagement the accountant can be left as another unsecured creditor with limited rights to claim a lien over files. The letter … Read more

Do you understand your own terms and conditions?

Whether you’re selling products or services, your T&Cs, Conditions of Sale, Terms of Trade should clearly describe what you’re doing and set expectations as to when you’ll do it and on what terms. Over time, your product suite and service offerings are likely to be enhanced and updated. You may make modifications here and there, … Read more