Litigation can be an expensive and time consuming exercise and today’s enterprise is looking for more than just assistance at the time an issue arises. SV Voidables can help you take proactive steps to mitigate your or your client’s risk of being pursued by Liquidators or Bankruptcy Trustees for voidable transactions. Adopting a proactive approach requires starting well before a debtor becomes insolvent. It requires a forensic due diligence of internal controls and documented trading terms and conditions, with the aim of applying consistent recovery strategies across all trade debtors. How to prevent litigation? Key indicators that Liquidators and Bankruptcy Trustees look at when deciding to pursue a creditor for voidable transactions are, as a non-exhaustive list:
Therefore, it is important to be aware of the risks current debt collection practices may be placing on you or your client’s business. For example:
|We compare those terms to a Matrix analysis, which scores the terms relative to a cross-section of other terms and conditions in the market. That score can be provided to your lawyer to assist in drafting updated terms.|
|The Personal Property Securities Register (PPSR)||We undertake an audit of a sample of trade debtors to assess the effectiveness of the PPSR registrations.|
|Internal controls over trade debtor recoveries||We perform a review of:
These are all issues that can leave you or your client open to recovery action being taken by Liquidators or bankruptcy Trustees.
We can further assist by training employees to handle correspondence with debtors, so that they stay within the bounds of the good faith defence.