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Sequestration Setbacks – Lessons from the case of Vlahos v Vlahos

By David Burley a Law Clerk of Matthews Folbigg Lawyers in our Insolvency, Restructuring and Debt Recovery Group.

Roderick Group Pty Ltd (in liq), in the matter of Vlahos v Vlahos [2024] FedCFamC2G 1439 (“Vlahos v Vlahos”) is the latest case in which the court has reinforced the importance of paying close attention to detail when applying for a sequestration order. The case dealt with an application for the review of a sequestration order made against the estate of Mr Vlahos. The pivotal issue was whether Mr Vlahos had been properly served with a bankruptcy notice, an act required under the Bankruptcy Act 1966 (Cth). Mr Vlahos contended that he had not been properly served due to an incorrect postcode being used in the address (even though he himself had provided that same post code). The implications of this argument and the subsequent decision carry significant consequences for creditors in serving bankruptcy notices and proceeding with creditors petitions, and also for trustees in bankruptcy appointed under sequestration orders which might be liable to be set aside. [...]  READ MORE →

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Signed, Sealed….But Was it Really Delivered? The Perils of Serving Legal Documents by Prepaid Post

By David Burley a Law Clerk of Matthews Folbigg Lawyers in our Insolvency, Restructuring and Debt Recovery Group.

In the recent case of Roderick Group Pty Ltd (in liq), in the matter of Vlahos v Vlahos [2024] FedCFamC2G 1439 (“Vlahos v Vlahos”), the Court was tasked with deciding whether a bankruptcy notice sent by post, but which included an incorrect postcode in the address, had nevertheless been validly served. The case highlights the risks associated with relying on non-personal service methods such as service by post, where minor errors can lead to substantial legal consequences. The judgment underscores the importance of accuracy in serving documents and the benefits for creditors who opt for personal service (especially insofar as time and costs are concerned). [...]  READ MORE →

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Overdue payment – lawyer or Debt Collector?

By Jodie Rodrigues, solicitor at Matthews Folbigg in the Insolvency, Restructuring and Debt Recovery Group

So you’ve found an outstanding invoice. Sure, all invoices are valuable to a business but now you’re considering whether there is any commercial benefit to asking a lawyer to chase the debt. There are real advantages in using a lawyer rather than a debt collector to assist with collection of your debts. There are three main questions you should ask when considering which invoices to chase through legal proceedings: [...]  READ MORE →

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A DEBT COLLECTION AGENCY VERSUS A DEBT COLLECTION LAWYER

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

The debt collection process is one which causes a lot of hesitation and frustration which can lead to a misunderstanding of what the key differences are between a debt collection agency and a debt collection lawyer.

Some creditors choose to handle such matters on their own whilst others choose to engage with a debt collection agency at first instance. That being said, engaging with a debt collection lawyer is a step which many avoid due to some misconceptions of how lawyers deal with the debt recovery process and by the same token, engaging a lawyer can seem daunting. [...]  READ MORE →

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Creditor’s Statutory Demand Threshold: What It Is and How to Use It

By Kim Nguyen, Solicitor of Matthews Folbigg Lawyers, in our Insolvency, Restructuring and Debt Recovery Group.

On 15 February 2021, the Treasury released a consultation paper “Increasing the Statutory Demand Threshold” seeking submissions on the appropriateness and impacts of permanently increasing the statutory demand threshold. The consultation period expired on 5 March 2021, however, further information can be found here.

What were the temporary changes?

In response to COVID-19, Federal Parliament introduced insolvency reforms to support small businesses in financial distress.  In March 2020, the Government passed the Coronavirus Economic Response Package Omnibus Act 2020 (Cth) (Coronavirus Act) which temporarily: [...]  READ MORE →

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Clearing your debtor ledger – Get in touch with your not too friendly Debt Collection Lawyer!

By Hayley Hitch, an Associate of Matthews Folbigg Lawyers in our Insolvency, Restructuring and Debt Recovery Group

Do you hate debt collection? Do you have a list of debt collection tasks that is getting longer every day? Have you been unable to accomplish the critical debt collection part of debt collection? If only debt collection were easier, and there was some way of moving those pesky debtors off the debt collection ledger! And don’t forget the cashflow side of debt collection – wouldn’t you like to have a bit extra cashflow back in your budget? [...]  READ MORE →