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RECOVERING MONEY OWED

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Rosso View Drop Down
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Joined: 07/December/2017
Location: Australia
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  Quote Rosso Quote  Post ReplyReply Direct Link To This Post Topic: RECOVERING MONEY OWED
    Posted: 07/December/2017 at 14:57
Hi all, i have had orders made in my favour against an ex employer in the Magistrates Industrial Division after filing for a default order when they failed to respond. They tell me they have no money. wondering if the sheriff can seize person property from the directors or if they can only get property owned by the company. The company is set up as....XXXX Pty Ltd as trustee for the XXXXX Family Trust trading as XXXXX. Hope my question makes sense.

AMK Law View Drop Down
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  Quote AMK Law Quote  Post ReplyReply Direct Link To This Post Posted: 06/April/2018 at 16:58
Hi Rosso,

It is hard to tell if the company has no money or is going out of business without first doing financial checks on the company. you mention that you have obtained a default judgement against your previous employer (company). in this instance, the company is a judgement debtor and the money ordered in your favour is called the judgement debt.

There are number of actions you can take to try and make the company pay up the judgement debt. For instance, you may elect to serve a creditor’s statutory demand for payment of the judgement debt on the company. The company then will have 21 days to satisfy the debt demanded.

If the company still refuses to pay or fails to pay the debt after service of the statutory demand then the company is deemed insolvent due to the provisions outlined in the Corporations Act 2001 (Cth). Next, you may decide to make an application to the Court to wind the company. Following the court application, a liquidator will be appointed who will conduct initial investigations into the financial affairs and conduct of the company.

Having said the above, remember that there is no guarantee that you will be able to recover the judgment debt owed to you because the company not have sufficient assets to satisfy the judgement debt.

Lastly, insolvent trading can be also be looked into because the directors may be held personally liable if the company was trading while insolvent.

Should you wish to discuss this matter further or should you require specific advice, please feel free to contact us via email on admin@amklaw.com.au, via phone on (03) 8564 8474 or visit our website at www.amklaw.com.au
This information is of a general nature only and it is not, nor is intended to be, legal advice.

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