Insolvency Recovery
When a Company That Owes You Money Fails
Receiving a notice of liquidation or administration is alarming. You worry the money you’re owed is gone, and may even be pursued by a liquidator to repay previous payments (‘preference payments’). We provide clear, strategic advice to creditors, helping you understand your rights, recover what you can, and defend your position.
Why Choose Irvine Lawyers for Insolvency Recovery
- Deep Insolvency Expertise: Extensive experience with the Corporations Act 2001 (Cth), winding-up, administration, and liquidation processes.
- We Defend & Pursue: Act for creditors recovering debts and for those defending against liquidator claims.
- Clear Advice: Realistic commercial assessments. We advise on the most cost-effective path and when cutting losses is appropriate.
- Powerful Legal Tools: Correct use of statutory demands and other insolvency-specific legal tools.
Insolvency Recovery: What It Covers
Statutory Demands for Payment
Formal legal demand for a debt of $4,000+ under the Corporations Act. The company has 21 days to respond, failing which they are presumed insolvent, enabling a winding-up application.
Winding-Up Applications
If a company ignores a Statutory Demand, you can apply to the Supreme or Federal Court to have the company wound up, placing it into liquidation. Often the threat alone secures payment.
Defending Preference Claims
If paid before liquidation, a liquidator may attempt to “claw back” funds. We defend these claims, showing good faith and entitlement to retain payments.
Advice for Creditors in Liquidation
We help creditors lodge a Proof of Debt, liaise with liquidators, and represent you at creditor meetings to protect your rights and maximise recovery.
How It Works: Our Insolvency Process
- Free Strategy Consult: 30-minute review of debts, notices, and debtor solvency with practical strategy advice.
- Issue Statutory Demand: Prepare and serve a Statutory Demand for a fixed fee, triggering a 21-day response period.
- Action or Defence: Assess commercial viability of winding-up applications or defend against liquidator claims.
- Resolution: Manage the full legal process aiming for best commercial outcome—payment, dividend, or successful defence.
Pricing & Transparency
Fixed fees for preparing and serving Statutory Demands. Clear estimates provided for complex matters like winding-up applications or defending preference claims. Costs vs benefits always discussed upfront.
Common Situations We Handle
- Issuing a Statutory Demand in Victoria for large unpaid company debts.
- Receiving a liquidator’s demand for an alleged unfair preference payment.
- Applying to the Supreme Court to wind up a non-paying debtor company.
- Lodging a Proof of Debt for a corporate client in administration.
- Advising creditors on rights at creditor meetings.
- Investigating insolvent trading by companies that owe money.
Meet Our Team
Sharp, strategic, and commercially focused insolvency lawyers, working closely with our debt recovery team to provide services from invoice collection to complex liquidations.
Service Areas & Contact
From Warrnambool and South Morang, we provide strategic insolvency advice across Melbourne and regional Victoria. Protect your rights when a debtor fails.
Call us on (03) 9422 5439 for South Morang or (03) 5562 9196 for Warrnambool, or Book your free 30-minute case assessment online.
FAQs: Insolvency in Victoria
What’s the difference between debt recovery and insolvency?
Debt recovery targets solvent debtors; insolvency law applies when a company cannot pay its debts and involves formal processes under the Corporations Act.
What is a Statutory Demand?
A formal legal demand for payment served on a company. If unpaid within 21 days, the company is presumed insolvent, enabling a winding-up application.
What is a liquidator’s “preference claim”?
Attempts by a liquidator to claw back payments made before liquidation, arguing they were “unfair preferences.” We help defend these claims.
What’s the difference between a liquidator and an administrator?
An administrator seeks to save the business or maximise creditor outcomes, while a liquidator ends the business and distributes assets.
My debtor is in liquidation. Is my money gone?
Not necessarily, but full repayment is unlikely. As an unsecured creditor, you must lodge a Proof of Debt. You may receive a dividend, but it is not guaranteed.