Vanessa Swain: Welcome, everyone, to our webinar today on the art of debt recovery: legal tools and tactics for businesses. My name is Vanessa Swain. I’m a practice leader in LegalVision’s disputes team, and I’m joined today by my co-host, Sunayana Khandelwal, a lawyer in the same team.
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Sunayana Khandelwal: So, today we will be discussing some of the debt recovery points. The first one: the impacts that unpaid debt can have on a business; some preventative tactics; options to escalate your debt recovery, including some legal recovery options.
We will also talk you through a couple of case studies where we have achieved some great results for our clients, and we will answer some of your questions at the end.
And now, Vanessa will speak about the impacts of debts on small businesses.
Whether you’re a small business owner or the Chief Financial Officer of an ASX-listed company, one fact remains: your customers need to pay you.
This manual aims to help business owners, financial controllers and credit managers best manage and recover their debt.
Vanessa Swain: Thanks, Sunayana. So, before we talk about how to recover debts, it’s important to understand the scale of the problem and why this matters so much for small businesses.
Recent data reports show that 63% of Australian SMEs lose revenue due to late payments, with some of them losing over $30,000 a year.
The data also shows that only around 1 in 5 invoices are actually paid on time, and payment delays are actually getting worse, contributing to an estimated $115 billion tied up in unpaid invoices nationwide.
Chasing unpaid invoices is also a major drain on time, with many businesses reporting that they spend up to 12 days a year chasing payments.
The impact of unpaid invoices has become critical, with a whopping 1 in 10 businesses reporting that they’ve considered actually closing their business due to late payments. These are some shocking statistics.
But it does clearly illustrate that effective debt recovery isn’t just administrative — it’s critical to cash flow and business stability.
Sunayana Khandelwal: We’ve just seen how significantly unpaid debts can impact your business. The good news is that many debt issues can be prevented with the right systems in place from the very start.
The first is sending invoices promptly. Now, this involves initiating the payment cycle, setting clear expectations with clients regarding payment terms and due dates, maintaining good record keeping, and preventing outstanding amounts accumulating over time.
The second is keeping lines of communication open. This means maintaining open and transparent communication about invoices and payment expectations, sending out courtesy emails and reminders before payment is due, being open to payment negotiations if a client faces genuine financial difficulties, and addressing any disputes or misunderstandings early.
The third is following up with debtors. Now, this includes phone calls — personal communication can help prompt action and allows direct discussions about payment plans. Communication via email creates a documented trail which can be leveraged for formal debt recovery if needed, and automated messaging — using accounting software and automated reminders — can streamline the follow-up process, saving you time.
The fourth is additional proactive measures you should consider. This includes clearly outlining payment terms in all agreements, requesting deposits or milestone payments for larger projects, offering early payment discounts to incentivise prompt payment, conducting regular credit checks on new clients to assess risk, and setting internal reminders for following up on ageing invoices.
Vanessa Swain: So, to minimise disputes and reduce the risk of non-payment, it’s really crucial that client agreements clearly outline your terms and expectations. There are some key elements that should be included in any well-drafted agreement.
Firstly, your payment terms. This includes due dates for payment, any accepted payment methods, and any late payment fees or interest charges that may become applicable.
Be sure to set out your pricing and invoicing details. It sounds obvious, but it’s often not done. This should include any fixed rates or time-based charge-out rates, taxes or fees, or any circumstances where cost may be revised — for example, where additional work is required, or if there’s an increase in material costs.
Consider including some specific dispute resolution and collection clauses. For example, what is the process that the parties are to follow if a dispute does, in fact, arise?
Set out your collection procedures, including any requirements for default notices to be issued, or any contractual rights to suspend services.
Some additional requirements that may be worth considering: do you require a company director to provide a guarantee? If you’re supplying goods or services on credit, do you require any security to be provided? And of course, don’t forget to set out any termination requirements.
By having clearly documented contract terms that are acknowledged and agreed by both parties, businesses can establish a solid foundation for invoice payment expectations and minimise potential disputes or non-payment issues down the track.
Sunayana Khandelwal: Once invoices are due, you can start with a friendly email reminder. This is important if you’re trying to maintain the business relationship. This step can also now be easily automated to save you time.
However, if a debtor hasn’t paid despite final reminders and follow-ups, issuing a formal letter of demand is typically the next step.
A well-crafted letter of demand can prompt action from the debtor, and if necessary, serve as documentation for any potential legal proceedings.
There are some key elements of an effective letter of demand.
These include, first, party details. The debtor’s correct legal name and address should be included, along with your company name, contact person and address. Also include your contact information so the debtor can discuss the matter with you.
The second is debt information. This includes invoice numbers, dates, and total amount owed. Setting out a specific deadline — which is typically 7–14 days — for the debtor to make the payment. Including payment methods, account details, and reference numbers.
The fourth is the consequences of non-payment. Consequences of non-payment usually include legal action, additional charges, and credit report impact.
The next is supporting documents. Attaching supporting documents, which include invoices, statements, and contracts, is quite beneficial. While it is not essential, it certainly can reduce some back-and-forth communications about what the debt relates to.
And finally, the delivery method. You can send the communication via trackable methods, which includes Express Post or registered mail, to ensure proof of receipt. Even though email is acceptable, if you have a strong history of email communication with a debtor, it is much more beneficial.
A well-drafted letter of demand demonstrates your seriousness in pursuing the outstanding debt, and can often prompt debtors to take action before more costly legal measures become necessary.
Vanessa Swain: Okay, so it can sometimes become difficult to know when to negotiate and when to escalate an unpaid invoice.
Negotiation can often achieve a faster, more cost-effective outcome while preserving valuable business relationships. In my experience, it’s usually time to negotiate in circumstances when the debtor acknowledges the debt but has genuine cash flow difficulties, or when maintaining a commercial relationship has ongoing value to you, or when the debtor has proposed a reasonable payment arrangement. Of course, what’s going to be reasonable will depend on the circumstances of each matter.
On the flip side, it’s also likely worth considering escalation when the debtor disputes the debt without valid grounds, ignores all communication, or simply shows no genuine intention to pay.
If you are successful in negotiating a payment arrangement, it’s also important to ensure it’s properly documented. Any payment arrangement should be specific about the amounts and dates for each instalment payment, and be clear and confirm the full debt amount being settled.
It should also — if interest is continuing to accrue — expressly state this, including any applicable rate that’s going to be applied.
You should set out what will happen if the debtor misses an instalment. For example, the unpaid balance becomes immediately due and payable.
And finally, negotiating a payment arrangement can also be an opportunity to consider requesting a director’s guarantee or security for larger debts.
Be sure to make clear that legal action will resume if the arrangement is, however, breached.
In my experience, many debt recovery matters resolve by way of commercial negotiation at some point in the debt recovery process. So let’s take a quick look at some key points to keep in mind.
Firstly, Negotiation 101 is to start from a position of strength. You can best do this by ensuring that you have all your documentation ready in support of your position.
Second, always consider what is important to you. For example, if getting payment quickly is most important to you, you could consider compromising on the amount payable. Or, alternatively, if getting payment in full is of most importance to you and time is not a factor, you could compromise by receiving payment in full over a longer duration.
Thirdly, keep your cool, even if the debtor becomes difficult. Remaining professional and solution-focused is likely to lead to a better outcome in the end.
And finally, remember to keep detailed records of all negotiation discussions and agreements reached. Any settlement terms that are ultimately agreed should be clearly recorded in writing.
Sunayana Khandelwal: Before committing time and resources to debt recovery, conduct a practical cost-benefit analysis by considering these three questions.
How much will the recovery cost? Debt recovery in general can be time-consuming and expensive, especially if it escalates to legal action. What you need to do is weigh the outstanding debt amount against potential costs, including legal fees, court fees, and staff time. For smaller debts, recovery expenses may exceed the amount you’re owed.
The second question to ask is, can your debtor actually pay? Assess whether the debtor has the financial means to pay. Pursuing a debt from an insolvent entity is often futile and wastes resources. Conduct basic due diligence on the debtor’s financial situation to determine the likelihood of a successful recovery.
The third question is, can you prove your claim? You must have solid documentation to support your claim, including contracts, invoices, delivery receipts, and email correspondence. Without proper documentation, proving your case in court or negotiating a favourable settlement becomes very difficult.
The deciding factor: if the debt is substantial, the debtor appears solvent, and you have strong evidence, pursuing recovery is likely worthwhile. However, if the debt is small, the debtor is insolvent, or documentation is inadequate, it may be more practical to write off the debt and focus your efforts elsewhere.
Consulting with legal professionals or debt recovery experts can provide valuable guidance in assessing whether pursuing a specific debt makes commercial sense.
Vanessa Swain: So, if negotiation fails and your initial efforts to recover a debt through reminders and demand letters are unsuccessful, there are several formal escalation options available.
In Australia, bad debt can appear on a debtor’s credit report in a couple of ways. First, the creditors themselves can report outstanding debts to credit reporting agencies, like Equifax or Illion, when the payment is 60-plus days overdue and all requisite notices have been issued.
Secondly, a court judgement that has been obtained against a debtor will automatically appear on their credit report. Similarly, if a debtor has been declared bankrupt, that information will also be automatically reflected on their credit report.
Credit reporting can be an effective motivator as it impacts the debtor’s ability to obtain future credit.
If you’re not getting traction with your debtor yourself, you can of course escalate your debt recovery efforts by engaging a debt collection agency or a lawyer. But what’s the difference?
Professional debt collection agencies can be a good option if the debt is relatively small. They typically work on a commission basis, but have some limitations as they cannot commence formal legal action.
Specialist debt recovery lawyers, on the other hand, have established processes, legal expertise, and can commence formal recovery options if that becomes necessary.
Issuing a creditor’s statutory demand is another clear escalation option, and is a powerful formal legal notice that can be issued to company debtors, requiring them to make payment within 21 days or face potential insolvency proceedings. Sunayana will talk about statutory demands in some more detail on our next slide.
However, finally, and as a last resort, you can escalate a debt recovery matter by commencing legal proceedings in the courts. For substantial debts, you may choose to file a claim in court seeking a judgment against the debtor. If you’re ultimately successful, that judgment then enables you to take further enforcement action. I’ll run through this option in a little more detail shortly.
Sunayana Khandelwal: So, a statutory demand is a formal legal document that creditors can use to issue to company debtors. It is one of the most powerful debt recovery tools available. So the question is, when can you issue a statutory demand?
Three conditions need to be met. The first: the debt is a liquidated sum — a specific, undisputed amount, typically for invoices issued. The second: the debt exceeds $4,000 or more — that is the statutory minimum threshold. And third: the debt is immediately due and payable.
The second question is, why issue a statutory demand? Consider the option of a statutory demand when the debtor has repeatedly ignored payment demands or reminders, you have strong evidence and documentation supporting the debt, you believe the debtor has the financial means to pay but is unwilling to do so, or you want to demonstrate serious intention to pursue legal action.
The legal requirements for the statutory demand: it must be in the prescribed form and properly addressed to the debtor company; clearly state the debt amount and your intention to commence winding up proceedings if unpaid; provide instructions on how the debtor can comply or apply to have it set aside; and be served correctly, either via post to the company’s registered business address, or by personal service on a director.
So, what are the consequences of non-compliance with the statutory demand? If the debtor fails to pay or apply to set aside the demand within 21 days, the presumption of insolvency is automatically created. You can then initiate winding up proceedings, potentially resulting in the company being placed into liquidation, with severe consequences for both the company and its directors.
Vanessa Swain: Okay, so — litigation. When other recovery methods fail, court proceedings may be necessary. So here’s just a broad overview of the litigation process.
To commence court proceedings, a statement of claim is filed with the court. The statement of claim outlines the legal basis of your claim, details of the debt, and the relief being sought — for example, you’re seeking payment of the debt, plus interest and costs.
Once filed, the statement of claim must be served on the debtor. This is done by post to a company’s registered address, or by way of personal service on an individual.
In New South Wales, the debtor is required to file their defence within 28 days. There are then two possible outcomes for how the claim plays out.
Firstly, if no defence is filed, you can apply for default judgment. What that means is that the court enters judgment against the debtor, requiring them to make the payment without you proving your claim or the matter proceeding to a hearing.
The second path is that if a defence is filed by the debtor, the matter proceeds to a defended hearing, where both parties present evidence and legal arguments, and the court ultimately determines the outcome.
If you’re successful, the court will issue a judgment ordering the debtor to pay. This, however, is not a quick process, and you should expect that a matter proceeding all the way to a final hearing could take anywhere up to 12 months in the Local Court, or usually much longer if the debt exceeds $100,000 and proceedings are commenced in the District Court.
Sunayana Khandelwal: If the debtor fails to make payment once you have a court judgment, you can take enforcement actions. Some of the enforcement actions will be discussed in this section.
The first is a garnishee order. It is an order of the court that directs the debtor’s employer or bank to pay portions of their income or account balance directly to you.
The second enforcement option is a writ of execution. A writ of execution is an order of the court that authorises the sheriff to seize and sell the debtor’s assets to recover the debt.
The third enforcement option is bankruptcy or winding up proceedings. For substantial debts, you can pursue bankruptcy for individuals, or winding up for companies, through the courts, potentially forcing the debtor into insolvency.
These enforcement mechanisms provide practical ways to recover judgment debts when debtors refuse to pay voluntarily.
Vanessa Swain: Okay, so let’s take a look at some case studies. Our first case study demonstrates how choosing the right strategic recovery option can place pressure on the debtor while achieving a strong commercial resolution.
So, by way of a brief summary of the relevant facts: our client supplied seafood to a company and was owed approximately $102,000. Our client had solid documentation, including a written and signed contract, a credit application, terms and conditions, and a personal guarantee from the sole director of the company. Intelligence at that time indicated that the company was attempting to sell its business. There were also strong suspicions that this particular debtor company owed money to a large number of creditors. Our searches revealed that the director, who provided the personal guarantee, did not own any real property.
So, given the potential business sale and lack of director assets, we recommended issuing a statutory demand to the company, rather than pursuing the director personally under the guarantee. This strategy aimed to place immediate and significant pressure on the debtor company — it had the potential to derail or complicate their sale of business, and created motivation for an urgent resolution.
With that strategy in mind, we issued a creditor’s statutory demand. The debtor did not respond within the 21 days. We then commenced winding up proceedings to maintain maximum pressure. At that point, three other creditors emerged and also filed appearances as supporting creditors in our winding up proceedings.
So what was the outcome? Facing liquidation and a collapsed sale of business, the debtor engaged in settlement negotiations. The parties ultimately reached an agreement where the debtor was permitted to proceed with the sale of their business. The sale proceeds were then distributed amongst the creditors involved in the winding up proceedings on a pro-rata basis. Each creditor received 80% of the total debt owed to them.
This, in our view, was ultimately a win-win outcome. For the debtor, they obviously avoided liquidation and potential director liability for insolvent trading. And for our client, they received 80% of the debt amount that was owed to them, which was significantly more than they would have obtained through a liquidator-managed sale, and they avoided lengthy liquidation delays.
So, from this case, we can see that strategic selection of recovery methods, combined with maintaining pressure at critical moments, can achieve what is essentially a superior commercial outcome compared to simply pursuing the most obvious legal remedy.
Sunayana Khandelwal: Our second case study illustrates how a well-drafted deed of settlement can provide powerful enforcement mechanisms to enable swift action when debtors default on payment arrangements.
A brief summary of facts. Our client invested approximately $300,000 into what turned out to be a Ponzi scheme. The company that received the funds was essentially a sham with no assets. The director owned no real property. The debtor faced potential claims for breach of contract, misleading and deceptive conduct, and fraud.
So what was our strategy? Rather than immediately commencing lengthy and costly court proceedings, the parties negotiated a settlement. However, we ensured the settlement was documented through a carefully drafted deed of settlement that included the following. First, strong default provisions allowing swift enforcement without a full court claim. Second, the director was personally named as a party to the deed, not just the company. Third, clear payment obligations and consequences of non-payment were included in the deed.
As anticipated, the debtor defaulted on the payment arrangement. However, because of the default provisions in the deed, our client immediately applied to have the judgment entered by the court without a lengthy defended hearing. We then commenced bankruptcy proceedings against the director personally, who was now a judgment debtor. This placed immediate and serious pressure on the director.
So, what was the outcome? Facing bankruptcy, the director was highly motivated to resolve the matter. The director ultimately paid the full settlement amount, the additional costs incurred, and the interest that had accrued. Our client achieved 100% recovery plus costs and interest.
The deed of settlement was crucial because it avoided lengthy litigation — our client did not need to prove fraud or misleading conduct in a defended hearing. The deed created personal liability, as the director couldn’t hide behind the corporate structure. It enabled swift enforcement, as the default provisions allowed immediate judgment without starting from scratch, and it maintained pressure, as bankruptcy proceedings provided powerful motivation for payment.
So, when negotiating settlements, don’t just agree on payment terms. Ensure those terms are documented in a properly drafted deed with strong enforcement mechanisms. The right documentation can mean the difference between a worthless agreement and a full recovery.
Vanessa Swain: Okay, so let’s recap on our top key takeaways today.
Unpaid debts can have a significant impact on your business, so should always be taken seriously.
Have proactive prevention strategies in place, including prompt invoicing, clear contracts, and clear client communications.
Be sure to ensure your client agreements clearly outline payment terms, dispute resolution processes, and collection procedures.
Always maintain comprehensive documentation. It is ultimately your strongest asset in negotiations and enforcement.
And be ready to escalate your debt recovery claims where appropriate, by considering demand letters, negotiations, statutory demands, and the litigation process as a last resort.
It’s always important to conduct a cost-benefit analysis before embarking on a legal claim. Assess your recovery costs, the debtor’s ability to pay, and the strength of your evidence.
And finally, consider getting legal advice to ensure you have your client agreements in line, and also when you need advice on whether or not to pursue a claim.
Sunayana Khandelwal: So, that concludes the main part of our webinar today. You might find our publication, How to Recover Unpaid Invoices, useful — available in the Resource tab, or by scanning the QR code on the screen now.
You might also be interested in our upcoming event, Managing Suppliers: Contract Terms That Prevent Costly Disputes, on the 21st of April at 11am.
Vanessa Swain: Okay, so we’re going to answer your questions shortly, and while you submit them, we’ll take a minute just to tell you about LegalVision’s membership. By becoming a LegalVision member, your business gets unlimited access to a full team of over 100 specialist lawyers for all of your business-as-usual legal needs.
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As a LegalVision member, you won’t worry about the cost of lawyers. Think of it as having your own in-house counsel. We’ll take care of all the business-as-usual legal work, so you can focus on running your business.
We also offer a dedicated service for in-house teams and general counsel to manage your high-volume, business-as-usual legal tasks. Our lawyers invest upfront in understanding what’s important to your business, and work as an extension of your in-house legal function.
To learn more about how membership or desk extension can help you, request a free consultation when the survey appears at the end of this webinar.
Sunayana Khandelwal: While we are answering your questions, you’ll see a poll question pop up. We’d appreciate it if you could please answer it.
Vanessa Swain: Okay, so let’s get into some of these questions.
I can see here there’s a question: do you recommend sending a “without prejudice” note on the letter of demand?
So, the answer is no. Your letter of demand should be issued on an open basis and should not be done on a without prejudice basis. The time to include “without prejudice” on communications is when you’re in the negotiation stage. If you’re talking about compromising your position at all, those communications should be marked as on a without prejudice basis. But in terms of the demand, it’s important that it is setting out the entirety of your claim and your position, and that should certainly be done on an open basis.
Sunayana Khandelwal: The second question that we have is, can a business organise a garnishee of wages from a business owner?
As we touched on this very briefly during our presentation: once judgment has been entered against an individual, it is certainly possible to obtain a garnishee order from the court in respect of wages. The garnishee order is issued to the person’s employer and requires them to automatically withhold a portion of the debtor’s wages until such time as the debt is satisfied. The payments withheld are to be paid to you as the judgment creditor.
If the employer fails to comply with the garnishee order, the employer can become liable for the whole judgment debt.
If you have a judgment against a company as well as its directors, and the director is an employee of the company, issuing a garnishee order for wages is likely to result in payment.
Vanessa Swain: Okay, so we’ve also got another question here. If an individual judgment debtor has moved from their last known address and can’t be found, what are the ways to find the debtor’s whereabouts to collect and enforce the judgment debt?
Okay, so that’s a great question, and it can sometimes be a very difficult process or step to take. What we do in that position is engage a location inquiries report, also referred to sometimes as a skip trace report. The purpose of that is to undertake a whole range of searches to see if there’s any additional information that can be found. So that involves engaging an external party to provide that skip tracing report. It’s not particularly expensive — usually around $300–$350. So if the debt is relatively large, it certainly could be a valuable option to consider.
Sunayana Khandelwal: The other question that we have is, what is the normal practice for charging interest on late payments? What rate is acceptable? Now, if your contract mentions an interest rate, you can use that to charge interest on late payments. However, if there is nothing mentioned in your agreement regarding interest on late payments, you need to rely on the prescribed interest rate under the legislation, which is around 2%.
Vanessa Swain: There’s also a question here about what dollar value would you say is not worth proceeding further with escalation after a letter of demand?
That’s also a great question that comes up really often, and ultimately it comes down to what we were talking about earlier — weighing up all of the factors: how much the debt is, how much your legal costs are going to be, how strong your prospects are of recovery, and all of those things. So there’s not an exact dollar figure where we draw a line in the sand or anything like that. It is weighing up all of those factors on a case-by-case basis, to assess whether it’s worthwhile to pursue or not.
Sunayana Khandelwal: The next question we have here is, which is better, Equifax or Experian? Now, this is a personal choice. You can use either to proceed with credit reporting. Both platforms provide very good services. All you need to do is create accounts there, and the process and the service are quite straightforward. So, it is entirely your choice which one you want to proceed with.
Vanessa Swain: Absolutely.
Okay, so another question that we have is: corporate terms of 60 days end of month don’t work for our small business, and getting a director’s guarantee is a dream from these massive companies. They just do what they want, and there’s no negotiation. What do small businesses do?
This question comes up frequently, and unfortunately, there’s no great answer. It’s very difficult. These large corporations do dictate their own terms, and that’s usually on a take-it-or-leave-it basis. So you can’t force them to negotiate terms with you, and essentially, it’s a matter for you to weigh up whether agreeing to their terms is ultimately viable for your business or not.
Sunayana Khandelwal: The other question that we have is, what is the limitation period for commencing debt recovery proceedings? Now, as a general rule, you have 6 years to commence debt recovery proceedings from the time when the debt became due and payable. An express acknowledgement of debt can restart the limitation period. However, once a judgment has been entered, as a general rule, you usually have 12 years to enforce it.
Vanessa Swain: Okay, I can also see another question here that says, how does the debt collection legal process apply or vary if the debtor is a sole trader?
So, essentially, it doesn’t change. Where you are a sole trader and not trading under a corporate entity, the legal entity that you are recovering from is the individual — the person who is just trading as a business. In that circumstance, the initial process is exactly the same: sending reminders, following up on invoices, sending your letter of demand. And then if you’re escalating beyond that, obviously the statutory demand option is no longer an option in that scenario, but you can pursue those individuals through the court process for the purpose of obtaining judgment.
Vanessa Swain: I can also just see quickly, someone has queried, isn’t the penalty interest rate 10%?
That absolutely is the interest rate in Victoria. Victoria has a set penalty rate, or default interest rate, in respect of debts, which is currently set at 10%, so that is correct.
Sunayana Khandelwal: There is also a question regarding — a debtor has moved, but has been traceable via social media to a work location. Is it acceptable to serve a notice at their work location?
Now, you are able to serve a letter of demand at the debtor’s work location. However, once you receive the proper registered address for the debtor, and if they provide it to you, you should avoid making any communication to their work location.
Vanessa Swain: Okay, I can also see a number of questions in relation to recovery in the NDIS space.
All I can say about that for the purposes of this webinar today is that debt recovery in the NDIS space can be quite complex, and there are a number of factors that need to be looked at on a case-by-case basis. So we can’t get into that in more detail unfortunately as part of this webinar, but I would remind you and invite you to take up the offer to leave your contact details for a complimentary consultation, and we’d be happy to discuss this with you in some further detail.
I think we’ve got time for one more question.
So, there is a question about: how do I protect myself from loss when a business enters receivership?
So, firstly, it’s important to distinguish between a receiver and another type of external administrator — like a liquidator, for example. When a receiver is appointed, that’s done privately — it’s a private appointment, commenced by a secured creditor. The receiver’s role is, in essence, to sell assets, or in some instances to take control of the company, in order to recover money that is owed to that secured creditor that has appointed them. The receiver has no interest in any other creditor who’s owed money, which is quite distinct from a liquidator, whose role, by contrast, is to sell assets to the benefit of all creditors equally.
If your debtor company does enter receivership, this does not prevent you from commencing or continuing your own debt recovery action. However, in reality, if a receiver has been appointed, it will in most cases have an impact on the prospects of whether the debtor company has the means to be able to pay you.
By contrast, if your debtor company is placed into liquidation or voluntary administration, you’re not permitted to commence or continue your recovery action in those scenarios.
So, I think that’s all the time we have for today, so apologies if we haven’t answered your questions. There was a lot coming through, but please submit your details in the survey at the end, and we can certainly provide assistance with any questions that we didn’t answer, or also to learn more about how our membership can help you.
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