When you supply goods or render services to a business that subsequently goes into some form of external administration, it can be a difficult time for everyone involved. You may not have been paid everything you were owed, employees may have lost their jobs and the business may not have sufficient funds remaining to enable a proper investigation into the affairs of the business.
If the business does go into liquidation or bankruptcy and you were paid (in part) for some of these goods or services supplied, it is possible that you may receive a demand from the Liquidator or Registered Trustee in Bankruptcy for repayment of these monies, as a voidable transaction. This may appear unfair, particularly where you provided valuable services to the business and you were merely paid for those services.
A voidable transaction may be clawed-back by a Liquidator or Registered Trustee in Bankruptcy where the transaction (ie the payment for goods or services provided by you) occurred at a time when the business was insolvent and you knew, or should have known that the business was showing signs of insolvency. Typically, a Liquidator or Registered Trustee in Bankruptcy may only look back 6 months from the date of their appointment, however, this is not always the case, as demonstrated by our graph.
We believe that defending a claim from a Liquidator or Registered Trustee in Bankruptcy for a voidable transaction should be the last resort, and will work with you to mitigate the risk of you receiving one of these demands.
However, in the event you do receive a demand, SV Voidables can help you. SV Voidables is a national first service, providing litigation support, expert and investigation services in recovering or defending voidable transactions.
If you are in the situation where you receive a demand from a Liquidator or Registered Trustee in Bankruptcy for repayment of monies, SV Voidables can help you. We will assess your situation and talk you through your options.
Our role is to help provide objective and practical solutions tailored to your situation to mitigate the risk of you receiving such a demand in the first place, or to mitigate your loss should you receive such a demand.
If you have questions about voidable transactions or about why you received a demand from a Liquidator or Registered Trustee in Bankruptcy, visit our FAQ section, or speak with an expert on our confidential assist line on 1800 246 801.