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DEBT COLLECTOR OR DEBT COLLECTION LAWYER? WHICH IS BEST FOR DEBT COLLECTION?

Debt collection is difficult at the best of times. To make debt collection easier, it is natural to turn to debt collectors or debt collection lawyers to assist. But who is best placed to deal with your specific situation? To answer this, it is worth thinking about the nature of the relationship you have with the debtor.

The debt collection relationship between debtor and creditor:

Debt collection can arise in all manner of situations. It can happen when a trusted and valuable commercial associate falls on hard times, when an opportunistic borrower thinks they can get away with not paying their bills, or for countless other reasons. The nature of the debtor/creditor relationship can be integral to the approach. [...]  READ MORE →

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How can property, of a bankrupt, not be “property of the bankrupt”?

By Jacob Reardon, a solicitor of Matthews Folbigg, in our Insolvency, Restructuring and Debt Recovery Group

One of the most entrenched distinctions between the personal and corporate insolvency regimes in Australia is the manner in which the property of the insolvent individual is treated. In a liquidation, for example, the title to the company’s property remains with the company upon the appointment of a liquidator, who is only an agent for the company. However, the position is fundamentally different under the Bankruptcy Act 1966 (Cth) (“the Act”). [...]  READ MORE →

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Collecting Money: which court should I pick?

By Ewurama Appiah a Law Clerk at Matthews Folbigg in the Insolvency, Restructuring and Debt Recovery Group

Do you have a debt to collect and are you unsure in which court to file your claim? Read on to find out more information on the steps you should take to ensure you maximise your ability to recover that debt!

Debt recovery through the courts is largely regulated by state and territory law and the procedural rules of the courts. Recovery of debts may include the repossession of assets or other legal enforcement of security interests. [...]  READ MORE →

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Why do It Alone? Engage a Debt Collection Lawyer

By Keely Wunsch, Law Clerk at Matthews Folbigg in the Insolvency, Restructuring and Debt Recovery Group

You’re not alone if you have performed a service, provided a product/good, loaned money or entered an agreement and have not been paid what you are owed. Debt collection is a pervasive issue affecting individuals, businesses, and organisations. Handling debt collection alone can be arduous, time consuming and tricky. Instead, creditors would be well advised to consider engaging a specialist debt collection lawyer. This can ensure a streamlined process, technical expertise and commercial know-how, allowing creditors to avoid the stress and uncertainty associated with going it alone. [...]  READ MORE →

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Effective options to recover debts in NSW

Effective options to recover debts in NSW – What can I do to maximise success

By Ewurama Appiah a Law Clerk at Matthews Folbigg in the Insolvency, Restructuring and Debt Recovery Group

With changing economic landscapes in New South Wales, the need to recover debts can often pose challenges for creditors. However, there are a range of actions that you can take to maximise your process to recover debts. Here are some steps that you can take to ensure your debt recovery process has the best chance of success: [...]  READ MORE →

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Debt Recovery for Small to Medium Businesses

Debt recovery – All small/medium business owners have been here before – you have taken the time and care to provide your quality goods or services to a customer, and when it comes time for them to pay, you get radio silence or a refusal to pay. Your phone calls, texts and emails with payment reminders and attempts to follow up have been unsuccessful, and now, weeks or months later, you are exhausted and still have a large unpaid invoice, plus all the time and money you have spent on debt collection services. [...]  READ MORE →

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Dotting the I’s, and crossing the T’s – the perils of creditors statutory demands

By Jeffrey Brown a Solicitor of Matthews Folbigg, in our Insolvency, Restructuring and Debt Recovery Group.

The slightest slip of the pen can lead to disastrous consequences when you are dealing with creditors statutory demands, as a recent Supreme Court case demonstrates.

VO Group Australia Pty Limited (“VO”) was making an application to set aside a statutory demand that had been issued on it by Watpac Construction Pty Limited (“Watpac”).  Watpac in turn alleged that the application was made outside the 21 day time limit for making such an application and was invalid. [...]  READ MORE →

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Challenging Demands

By Jacob Reardon a Solicitor of Matthews Folbigg, in our Insolvency, Restructuring and Debt Recovery Group.

Section 459G(1) of the Corporations Act 2001 (Cth) (“the Act”) allows a debtor company served with a statutory demand to apply to the Court to have it set aside. Under s 459G(2) any such application must be filed within the 21 day statutory limitation period. This is a strict 21 days and generally cannot be extended.

The operation of s 459G and the strict 21 days limit has led to some controversy in situations where a debtor company has been served with a statutory demand, but does not become aware of the service until after the expiry of the 21 day period. How could it file an application to set aside a demand it did not know about? [...]  READ MORE →

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WINDING UP DEBT COLLECTION!

By Anica Cunanan, Solicitor at Matthews Folbigg in the Insolvency, Restructuring and Debt Recovery Group

Debt collection is winding up as interest rates increase and margins are squeezed.  Generally, creditors want a debt collection process which will recover the maximum amount of any debt for the least amount of work and cost.

Well, what debt collection short cuts are there? When reviewing your debt collection process, what other options exist besides litigation?

Debt collection should not be a “one size, fits all.” When formulating or reviewing your debt collection processes, make sure you understand the advantages and disadvantages of each debt collection avenue and tailor this to particular debt collection situation. A good debt collection system will factor in multiple issues such as the nature and amount of the debt, as well as the circumstances attitude and likely response of the debtor company. A good debt collection system will help you determine which debt collection avenue is appropriate. [...]  READ MORE →

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The Economic Storm – and How To Weather It

The Australian Tax Office (ATO) have reinvigorated their efforts in debt collection after a period of reduced collection over the pandemic. The ATOs post-pandemic debt collection campaign is characterised by recent surges in Director Penalty Notices (DPNs), an upswing in winding up filings, statutory demands and insolvency appointments. This, coupled with the challenging nature of the current Australian economy has hit businesses hard, especially in NSW, with insolvency appointments up 62 percent in the first half of 2022-23. [...]  READ MORE →

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My Bankruptcy (That Never Was)

By Jacob Reardon a Solicitor of Matthews Folbigg, in our Insolvency, Restructuring and Debt Recovery Group.

A bankrupt may apply to the Court under section 153B of the Bankruptcy Act 1966 (Cth) (“the Act”) to have the bankruptcy annulled. With some exceptions, the effect of an annulment is to place the bankrupt back in the position as if there had been no bankruptcy. Most annulments occur following a sequestration order obtained by a creditor – for instance where the debtor was simply unaware of the petitioning creditor’s debt, can pay the debt and is otherwise solvent (an expensive process but perfectly achievable with good advice). [...]  READ MORE →

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Fighting the Wolf at the Door

By Jacob Reardon a Solicitor of Matthews Folbigg, in our Insolvency, Restructuring and Debt Recovery Group.

Under section 467(1) of the Corporations Act 2001 (Cth) (“the Act”) the Court has discretion in a winding up application to:

  • Dismiss the application with or without costs, even if a ground on which the Court may order a company to be wound up is proved; or
  • Adjourn the winding up application hearing conditionally or unconditionally; or
  • Make any interim order it thinks fit.

In exercising its discretion, the Court’s attention will be directed to the public interest which usually dictates, in the absence of special circumstances, that an insolvent company be wound up to prevent it from incurring further debts.

In Reform Projects Pty Ltd v Macarthur Projects Pty Ltd [2022] NSWSC 672, Parker J (“Macarthur Projects”) considered an application to have the defendant company (“Macarthur”) wound up in insolvency after it had failed to comply with a statutory demand served by the plaintiff company (“Reform”). [...]  READ MORE →