Defending voidable transactions

The main defences to a voidable transaction claim are:

• Good faith defence;
• Running account balance defence;
• The defendant creditor is a secured creditor; and
• The ultimate effect doctrine or “the landlord defence”.

Other arguments that we have faced against claims we have run are:

• Capacity to pay;
• Equitable liens;
• Set-off, following the recent case law commentary;
• Charging clauses; and
• Factoring agreements.

If you have any questions regarding these possible defences, please give our experts at SV Voidables a call on 1800 246 801.