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.