Insolvency & Bankruptcy Law - You are owed money, what should you do?
Date: May 10, 2010
Authors: LAC Lawyers
A creditor is someone who is owed money by and individual more often referred to as a Debtor. As a creditor there are several options available to you to recover the debt that is owed to you. The amount of money or debt owed to you will determine the method by which you are able to recover the money from the Debtor.
The first thing to do would be to attempt to recover the money yourself from the Debtor. If you do not succeed you would then need to seek the assistance of a lawyer to provide you with options as to what you are able to do to recover the debt.
At a legal firm, the lawyers would meet you, listen to you and request that you provide sufficient information and evidence to assist in the recovery process. They would also be in a position to advise you as to what steps they would be taking in your matter to attempt recovery of the debt. It is important that both lawyer and client are clear about the course of action to be taken to ensure that the client’s wishes are carried out and that they receive sound legal advise based on their circumstances.
Therefore once you have provided all relevant information and evidence, the legal firm then advises you of the next step and begins the process to recover the debt on your behalf. You lawyer would then contact the Debtor and or their solicitor and request that the debt be settled. If a settlement is not forthcoming, the lawyers would commence legal proceedings in court to proceed to recover the debt.
In court an action to recover money payable to you would be classified a civil proceedings and it would be commenced in the appropriate court. Cause papers are drafted, filed and served by the lawyers on your behalf and the matter usually concludes after a hearing or once judgment is obtained against the debtor. Copies of Judgments are then served on the Debtors and they are given time to settle the judgment sum.
There are times when the Debtor who has been served with a final judgment may now come forward with a proposal for settlement at this stage. Your lawyers would then advise accordingly of the terms of the settlement and you can then decide if you want to accept the proposal or pursue further legal action. More often than not the fear of further enforcement proceedings such as Bankruptcy, Execution, Garnishee proceedings, etc which the creditor contemplates often moves the debtor to come forward to settle the matter.
Should the debtor fail to come forward then enforcement or execution proceedings are commenced. Although it may look like another round of proceedings, it is more often than not that debts are paid off through enforcement action.
Insolvency & Bankruptcy - Opposing a Winding Up Application
Date: March 22, 2012
Author(s): Kelly Chau LL.B.
Once a company fails to comply with a statutory demand, pursuant to section 459C of the Act, there is a presumption that the company is insolvent and an application for winding up may be made against it.
Insolvency & Bankruptcy - Part IX Debt Agreement
Date: March 22, 2012
Author(s): Kelly Chau LL.B.
A Part IX debt agreement is a legally binding agreement between a debtor and his/her creditors to satisfy their debts and avoid going bankrupt (“Debt Agreement”).
Insolvency & Bankruptcy - Receivership
Date: March 22, 2012
Author(s): Kelly Chau LL.B.
Receivership is a form of external administration. A company goes into receivership when a receiver is appointed privately by a secured creditor or by a court to take control of some or all of the company’s assets.
Invosency & Bankruptcy - Part X Personal Insolvency Agreement
Date: March 22, 2012
Author(s): Kelly Chau LL.B.
A proposal of a Personal Insolvency Agreement (“PIA”) of Part X of the Bankruptcy Act 1966 (Cth) (“the Act”) can be made in order for a debtor to negotiate with his/her creditors and avoid going bankrupt.
Insolvent Trading
Date: September 22, 2010
Author(s): LAC Lawyers
Insolvent trading occurs when a company incurs a debt when it is unable to pay its debts as and when they fall due. LAC Lawyers' Bankruptcy & Insolvency team offer expertise in all aspects of Bankruptcy & Insolvency Law. Get instant results - call LAC Lawyers today on 1300 799 888 .
Is it the beginning of the end for discretionary trusts and one-man companies - Centrelink, Bankruptcy and Taxation
Date: September 01, 2010
Author(s): Michael Pickering B.A., LL.B. (Hons.), LL.M., M. A.
Another example is Elliott v. The Secretary of the Department of Education, Employment and Workplace Relations decided in 2008 immediately before the High Court of Australia’s decision in Spry and was concerned with the means test for Centrelink pensions.
Reversal Of Effect Of Sons Of Gwalia Decision - Ending Of Equal Ranking Of Shareholder Claims With Claims Of Unsecured Creditors In Corporate Insolvency
Date: July 30, 2010
Author(s): Michael Pickering B.A., LL.B. (Hons.), LL.M., M. A.
The Corporations Act will be amended so as to reverse the decision of the High Court of Australia in Sons of Gwalia v. Margaretic. The Sons of Gwalia decision determined that, in a corporate insolvency, certain shareholder claims against a company rank equally with the claims of other unsecured creditors.
Insolvency & Bankruptcy Law - What is Part IX and Part X under the Bankruptcy Act 1966
Date: May 10, 2010
Author(s): LAC Lawyers
Part IX and Part X agreements under the Bankruptcy Act 1966 enable debtors to present creditors with proposals of settling debts. The payments are less than the amount of the debt itself and are paid in full and final settlement of the entire debt.
Family Law - The Competing Issues of Bankruptcy and Family Law
Date: January 13, 2010
Author(s): LAC Lawyers
Family law property settlements or applications for spousal maintenance may be further complicated where one spouse is bankrupt or considering bankruptcy. In these circumstances, a conflict clearly arises between the competing interests of a trustee in bankruptcy and the separated non-bankrupt spouse in determining how property should be distributed between the parties.
Business Law - Personal Guarantees & Indemnity
Date: August 04, 2009
Author(s): LAC Lawyers
If you are a supplier of goods and operate your business on a credit system then it pays to protect your position in relation to your debtors. The following scenario depicts a common occurrence in the supplier/purchaser market leading to frustration and ultimately loss of moneys owning.
Debt Recovery - Personal Insolvency Agreements
Date: August 04, 2009
Author(s): LAC Lawyers
If you find that you are overwhelmed with debt and cannot pay all those debts as and when they are due but at the same time you do not want to be declared a bankrupt, you may still have the option of entering into a Personal Insolvency Agreement (“PIA”).
Bankruptcy & Insolvency Law - What Can I Do If I Am Declared Bankrupt?
Date: April 29, 2009
Author(s): LAC Lawyers
The global economic crisis has no doubt affected millions of people and businesses world-wide. Australia is not immune and coupled with record high unemployment and talks of recession, it is not surprising that many people cannot pay their debts and the instance of bankruptcy proceedings being commenced by creditors has increased as a result.
Insolvency & Bankruptcy - Unfair Preference Payments
Date: March 07, 2009
Author(s): LAC Lawyers
You run a successful business supplying quality products to a hungry market. Generally your clients are very good with payment however due to the economic downturn some clients have not been able to pay their invoices on time and you have noted that recently that your company has sent out a few reminder letters prompting payment. The majority of those prompted eventually made payment.
Bankruptcy - Advantages and Disadvantages of Bankruptcy
Date: January 16, 2009
Author(s): LAC Lawyers
Bankruptcy involves you handing over control of your property and finances to a Trustee (the person who takes control over your property) in exchange for protection from legal action by your creditors (the people/companies you owe money to). You do not have to have a minimum amount of debts or property to enter bankruptcy.
Bankruptcy - What happens to our house if my spouse is made bankrupt?
Date: December 01, 2008
Author(s): LAC Lawyers
Consider your options by reading this article or for more information call us today.
Debt Recovery - The Common Stages
Date: September 24, 2008
Author(s): LAC Lawyers
At LAC Lawyers we are able to assist you with all debt recovery matters and advice you on the best method of enforcement to avoid unnecessary costs having regard to the circumstances of each matter.
Insolvency & Bankruptcy Law - Asset Protection - Can a house be seized from a spouse in bankruptcy proceedings
Date: November 20, 2007
Author(s): Michael Pickering B.A., LL.B. (Hons.), LL.M., M. A.
Notwithstanding the spectacular growth of the share market and of superannuation funds, the matrimonial house remains the single greatest asset for most people.
Insolvent Trading and Director's Liability
Date: October 12, 2007
Author(s): LAC Lawyers
Directors may be liable, personally, under the Corporations Act, Trade Practices Act, and the OH & S Act, among other legislation. A Director may also be personally liable for non payment of taxes.
What to expect when you call LAC Lawyers
Date: December 13, 2006
Author(s): LAC Lawyers
LAC Lawyers is a full service firm dedicated to the provision of superior legal services in Australia. Our aim is to provide unrivalled client satisfaction coupled with high quality service and advice. When you call LAC Lawyers our friendly reception staff will spend time with you to identify the area of law your enquiry relates to then pass you on to one of our qualified solicitor's who can help you.
The Benefits of Hiring A Lawyer
Date: August 16, 2006
Author(s): LAC Lawyers
The old adage “you get what you pay for” is as true today as it has ever been.
Why stay with your lawyer
Date: August 01, 2006
Author(s): LAC Lawyers
The lawyer/client relationship is a personal one and there are many reasons which will dictate who you can and cannot work with. If you don’t like your lawyer, should you change? Ultimately, the relationship between a lawyer and client must be built on mutual trust.