BTLawyers has experience assisting liquidators, directors and third parties in corporate insolvency and trustees in bankruptcy.
When a company enters liquidation or an individual becomes bankrupt, various obligations are placed on a liquidator or trustee to secure assets. These obligations often include the recovery of property which has been transferred from the insolvent company or bankrupt individuals.
For Insolvency Practitioners
BTLawyers is able to offer practical and commercial advice to assist in progressing claims for voidable transactions.
We can assist with:
- Pursuing and defending claims for voidable transactions under Part 5.7B of the Corporations Act 2001 (Cth).
- Advising insolvency practitioners as to various matters that arise during the course of an appointment, including the recovery of voidable transactions, examination of directors and bankrupts and insolvent trading claims.
- Acting for a liquidator in conducting public examinations and advising on the prospects and viability of pursing proceedings.
Upon the appointment of a liquidator or administrator, the Corporations Act 2001 (Cth) imposes obligations on a director to provide assistance in a number of ways. Failure to comply with the duties imposed may result in penalties and criminal charges prosecuted by ASIC.
Our recent matters in assisting directors include:
- Defending a claim for repayment of a director’s loan for the sum of over $800,000;
- Assisting in mitigation of penalties in criminal proceedings commenced by ASIC;
- Opposing a claim against a director’s home and successfully removing a caveat from the title to a property.
For further information on your responsibilities as a director for assisting an external administrator or receiver, click here
For Bankrupt individuals
Bankruptcy can have a life changing impact on individuals and while the obligations to pay creditors is alleviated, a number of restrictions are imposed. Bankruptcy lasts for three years and it can affect your financial future, so be sure to only consider it as a last resort.
Further information on what your obligations are for bankruptcy can be found here.
Recovery of Assets and Preferential Payments
Both liquidators and bankruptcy trustees are charged with the duty to secure assets. This duty often requires the recovery of payments from third parties which constitutes:
- Uncommercial transactions;
- Unreasonable director related transactions;
- Transfers effected for the purpose of defeating creditors; and
- The recovery of preferential payments.
BTLawyers can assist in the recovery and / or defending such claims. Speak to a BTLawyers insolvency expert about the options available to you.