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.
What may cause a voidable transaction to arise?
What may be the expected outcomes from receiving a demand for voidable transactions?
- Respond to the demand, denying your liability and putting the Liquidator or Bankruptcy Trustee to proof of their claim
- The main defence to a voidable transaction is that you received the transaction in good faith. Meaning that there was valuable consideration, you acted in good faith and you did not know, or could not reasonably have known, that the business was insolvent.
- However, there are approximately up to 20 other possible defences to voidable transactions (depending on the type of voidable claim)
- Attempt to settle the matter with the Liquidator or Registered Trustee in Bankruptcy
- Put your head in the sand, and hope that the Liquidator or Registered Trustee in Bankruptcy goes away
- Leave it to a court to determine
- Mitigate your risk of receiving a demand in the future
How can SV Partners help?
If you are in a 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.
At SV Partners, 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 contact us to speak with an expert on our confidential assist line on 1800 246 801.