Pursuing & Defending Claims by Liquidators2024-10-14T14:33:01+00:00

pursuing and defending claims by liquidators

Every Move Matters

Litigation Lawyers Sunshine Coast

Every – Move – matters

pursuing & Defending claims
by liquidators

Whether you are a liquidator seeking to maximise recoveries for creditors or an individual or corporate entity facing a claim from a liquidator, having the right legal team by your side is essential. The intricacies of insolvency law require not only a deep understanding of the legislation but also strategic insight to enforce or defend claims effectively.

At Axia Litigation Lawyers, we combine legal expertise with results-driven strategies, ensuring tailored advice and assertive representation in every insolvency matter. With our extensive experience, we are not just litigators—we are your strategic partners, working to protect your interests.

We understand the pressures, risks, and stakes involved. Whether advancing a liquidator’s claim or mounting a strong defence, our goal is to guide you through the complexities of insolvency law with precision, clarity, and actionable advice that delivers results.

Contact us: Monday to Friday : 9 am – 5 pm

Get Legal Support
Get Legal Support

Every – Move – matters

pursuing & Defending claims
by liquidators

Whether you are a liquidator seeking to maximise recoveries for creditors or an individual or corporate entity facing a claim from a liquidator, having the right legal team by your side is essential. The intricacies of insolvency law require not only a deep understanding of the legislation but also strategic insight to enforce or defend claims effectively.

At Axia Litigation Lawyers, we combine legal expertise with results-driven strategies, ensuring tailored advice and assertive representation in every insolvency matter. With our extensive experience, we are not just litigators—we are your strategic partners, working to protect your interests.

We understand the pressures, risks, and stakes involved. Whether advancing a liquidator’s claim or mounting a strong defence, our goal is to guide you through the complexities of insolvency law with precision, clarity, and actionable advice that delivers results.

Contact us: Monday to Friday : 9 am – 5 pm

Get Legal Support
Get Legal Support
Voidable Transactions Expertise

Expertise in disputed asset claims.

Insolvency Law Guidance

Navigate insolvency with expert advice.

Settlement Conference Leadership

Leading negotiations to favourable resolutions.

Insolvency Litigation

Specialised representation in complex insolvency disputes.

Every – Move – Matters

How Axia Can Help Defend Against Claims By Liquidators

When defending against claims made by liquidators, we provide robust representation to protect our client’s interests. We understand the significant stress and financial implications such claims can have on individuals and businesses.

Axia’s legal team conducts a meticulous evaluation of the trustee’s claims to ascertain their legal merit and advise on the robustness of your defence. We scrutinise the evidence and apply our legal expertise to determine the most advantageous approach to challenging the trustee’s position.

Axia provides targeted legal advice to individuals and entities facing claims by trustees in bankruptcy. We offer a thorough interpretation of the legal implications of the trustee’s claims and the defences available under both the Bankruptcy Act 1966 (Cth) and Queensland law. Our advice is crucial in formulating a robust defence, ensuring you are informed of your rights and the potential avenues for challenging the trustee’s actions

We craft bespoke defence strategies aimed at safeguarding your assets, questioning the trustee’s entitlement to recover certain properties, and disputing the validity of claims. Our strategic defence is designed to align with your specific circumstances and legal rights.

Axia advocates on your behalf in negotiations and mediation, aiming to settle disputes efficiently and avoid the financial and emotional toll of litigation. Our negotiation skills are leveraged to achieve outcomes that are in your best interest while preserving your assets.

Axia prioritises asset protection measures to minimise exposure to risk and safeguard personal and business assets from trustee claims. Our legal counsel is grounded in a thorough understanding of asset protection within the framework of bankruptcy law.

Where appropriate, Axia can move to have orders set aside or varied, providing a legal pathway to challenge decisions that adversely affect you. We meticulously prepare applications, presenting compelling arguments for the reconsideration of orders.

We facilitate effective liaison with trustees, ensuring transparent and equitable dealings. Axia’s involvement ensures that your perspective is fully represented and that any claims are addressed with due process and fairness.

Axia can represent and guide you through settlement conferences, negotiating diligently for a resolution that addresses the trustee’s claims fairly. Our experienced negotiators combine strategic communication with legal expertise to protect your interests, seeking a settlement that reduces liability and safeguards assets, thereby circumventing the unpredictability and expense of court proceedings.

In the event of litigation, Axia offers tenacious court representation to contest the trustee’s claims. Our experienced litigators are committed to defending your position, drawing on a deep understanding of insolvency and bankruptcy law.
  • Legal Advice
  • Business Financial Review

  • Strategic Advice

  • Debt Reduction or Annulment

  • Asset Protection

  • Settlement Conferences

  • Voidable Transaction Defence

  • Directors Duties Defences

  • Negotiation with Liquidators

  • Court Representation

Legal Advice
Our expert team provides clear, actionable legal advice tailored to your specific situation. We analyse the claims against you, identify potential defences, and outline your legal rights and obligations. Our goal is to demystify the legal process and equip you with the knowledge needed to make informed decisions.
Business Financial Review
We conduct a thorough review of your business's financial records to identify any vulnerabilities and strengths. This detailed analysis helps us understand the financial landscape and provides a solid foundation for building a robust defence. Our financial review also aids in identifying any discrepancies or errors in the liquidator's claims.
Strategic Advice
Strategic planning is crucial in defending against liquidator claims. We develop a customised strategy that aligns with your business objectives and legal needs. Our strategic advice encompasses risk assessment, potential outcomes, and the best course of action to mitigate exposure and protect your interests.
Debt Reduction
We explore all avenues for reducing debts in the context of insolvency claims. This includes negotiating settlements, challenging the validity of claims, and seeking court orders to declare debts unenforceable based on legal grounds. Our aim is to minimise your financial liabilities and secure a more manageable outcome.
Asset Protection
Protecting your assets is a top priority. We advise on legal mechanisms to shield your assets from liquidation claims, such as establishing trusts or re-structuring ownership. Our asset protection strategies are designed to safeguard your wealth while remaining compliant with relevant laws.
Settlement Conferences
We represent you in settlement conferences, where we negotiate with liquidators to reach a mutually acceptable resolution. Our skilled negotiators aim to resolve disputes efficiently, avoiding the need for protracted litigation. We focus on achieving settlements that are in your best interest, both financially and legally.
Voidable Transaction Defence
We defend against claims of voidable transactions by demonstrating that transactions were conducted in good faith, for value, and within the ordinary course of business. Our team meticulously gathers evidence and builds a compelling case to counteract the liquidator’s claims.
Directors Duties Defences
If you are a director accused of breaching your duties, we provide robust defence strategies. We demonstrate compliance with statutory obligations, due diligence, and reasonable business judgment. Our goal is to protect your reputation and avoid personal liability.
Negotiations with Liquidators
Effective negotiation can often resolve disputes without the need for litigation. We engage with liquidators to negotiate terms that minimise your exposure and financial impact. Our negotiation strategies are informed by a deep understanding of insolvency law and commercial realities.
court Representation
When litigation is unavoidable, our experienced litigators provide strong representation in court. We prepare and present your case with precision, advocating vigorously on your behalf. Our courtroom expertise ensures that your position is articulated effectively, aiming for the best possible outcome.
Legal Advice
We provide expert legal advice tailored to the unique circumstances of each liquidation. Our team guides liquidators through the complexities of insolvency law, identifying potential claims and the legal basis for recovery. We ensure that liquidators are fully informed of their rights and obligations, empowering them to make strategic decisions with confidence.
Strategic Advice
Developing a robust strategy is crucial for successful asset recovery. We provide strategic advice on prioritising claims, assessing their viability, and planning the most effective legal approaches. Our strategies are designed to maximise recoveries while minimising costs and delays, ensuring a streamlined and efficient process.
Investigation & Evidence Gathering
Our rigorous investigation and evidence gathering techniques are central to substantiating claims. We delve into the company's transactions and dealings to collect robust evidence, fortifying the liquidator's position in any recovery action.
Asset Tracing and Recovery
We specialise in tracing and recovering assets that have been dissipated or hidden. Our team employs cutting-edge forensic accounting methods and collaborates with asset recovery specialists to locate and return assets to the insolvent estate.
Voidable Transactions Pursuit
Our approach is to dismantle any arrangement that undermines the interests of creditors, ensuring that assets are clawed back for the benefit of the creditors.
Directors’ Duties Enforcement
We enforce directors' duties with tenacity, holding directors accountable for breaches that have contributed to the company's insolvency. Our legal actions aim to recover losses from directors personally, providing recompense to creditors.
Statutory Demands & Winding Up Proceedings
We assist in issuing statutory demands as a precursor to winding up proceedings, compelling debtors to satisfy their obligations. If non-compliance persists, we initiate and manage the winding-up process, working in conjunction with licensed insolvency practitioners, aiming to recover debts owed to the company during liquidation.
Public Examinations
Public examinations are a powerful tool for uncovering information that is critical to asset recovery. We conduct and manage these examinations to extract critical evidence, often revealing additional avenues for recovery.
Court Representation
In instances where litigation is unavoidable, our seasoned litigators represent liquidators in court with a formidable presence. We craft persuasive arguments and present compelling evidence to secure favourable judgments for the estate.

Every – Move – Matters

How Axia Can Help Liquidators Pursue Claims

At Axia Litigation Lawyers, we offer a comprehensive suite of services to assist liquidators in pursuing claims assertively and effectively. Our expertise and strategic approach ensure that all avenues for asset recovery are explored, maximising returns for creditors. Here’s how we can help in each critical area

Axia delivers expert legal advice, equipping trustees with current insights into bankruptcy law and its impact on the estate. We clarify complex legal provisions and counsel on the trustee’s powers under the Bankruptcy Act 1966 (Cth) and Queensland legislation. Our advice is crucial for trustees to effectively manage the estate and fulfil their fiduciary responsibilities.

Separate from our legal advice, Axia offers strategic advice to trustees, focusing on the practical application of their legal rights in the formulation and execution of a bespoke action plan. Our strategic advice is tailored to the unique circumstances of each bankruptcy case, ensuring that trustees are equipped with a clear, actionable strategy that prioritizes asset recovery and maximizes returns for creditors.

At Axia, we employ strategic legal mechanisms to identify and secure assets for the bankrupt estate, including pursuing third parties who may hold property of the estate. Our expertise extends to tracing assets concealed or disposed of in an attempt to defraud creditors, ensuring that all recoverable assets are returned to the estate for the benefit of creditors.

Our firm is adept at initiating and conducting legal proceedings to challenge transactions that may deplete the bankrupt estate. By invoking provisions under the Bankruptcy Act 1966 (Cth), we work to set aside transactions that are preferential, undervalued, or fraudulent, thus preserving the integrity of the estate.

Axia’s rigorous examination process is designed to meticulously investigate the bankrupt’s financial conduct and uncover hidden assets. We leverage our legal acumen to compel truthful disclosure from the bankrupt and associated parties, thereby revealing critical information that can lead to asset recovery.

Our lawyers are proficient in the art of negotiation, crafting settlements that protect the estate’s interests and maximise returns for creditors. We engage with debtors and third parties to negotiate favourable outcomes that align with the estate’s objectives.

In court, Axia provides tenacious representation, advocating for the trustee’s rights and pursuing the most advantageous results in asset recovery proceedings. Our litigation strategies are tailored to each case, ensuring the trustee’s position is presented with compelling authority.

Axia facilitates effective communication between the trustee and creditors, ensuring that the distribution of assets is conducted equitably and transparently. Our involvement streamlines the process, fostering cooperation and understanding among all parties involved.

We guide trustees in adhering to their statutory obligations, including the meticulous reporting to creditors and regulatory bodies such as the Australian Financial Security Authority (AFSA). Axia’s oversight ensures compliance with legal requirements and the maintenance of high professional standards throughout the bankruptcy process.

  • Legal Advice

  • Strategic Advice

  • Asset Tracing and Recovery

  • Investigation and Evidence Gathering

  • Statutory Demands & Winding Up Proceedings

  • Voidable Transaction Pursuit

  • Directors’ Duties Enforcement

  • Public Examinations

  • Court Representation

EVERY MOVE MATTERS

Over 75 Years of Combined Experience

Meet Our Expert Team

Axia Litigation Lawyers provide exceptional service and peace of mind for their clients. Based on the Sunshine Coast, Queensland, the Axia team services clients throughout Australia and abroad.

Adam Brown

Managing Director

Adam is the founder and Managing Director of Axia Litigation Lawyers. Having worked in Litigation and Dispute Resolution for over…..

Deneil Brown, Chief Operating Officer, Axia Litigation Lawyers
Deneil Brown

Chief Operating Officer

Deneil has been immersed in the legal industry for over 25 years and has vast experience across practice management, accounts and paralegal…

Nakita Brown, Senior Associate, Axia Litigation Lawyers
Nakita Brown

Senior Associate

Nakita is an experienced commercial litigation lawyer, bringing over ten years of legal knowledge to the table. She spent her early career…

Shane Ulyatt, Senior Associate, Axia Litigation Lawyers
Shane Ulyatt

Senior Associate

With a specialised focus on civil and commercial litigation and dispute resolution, Shane expertly handles a broad spectrum of legal matters…

Sam nelson

Lawyer

Sam’s expertise of commercial and civil litigation ranges from building and construction disputes, commercial and retail shop lease matters ….

Adam Brown
Adam Brown
Managing Director

Adam is the founder and Managing Director of Axia Litigation Lawyers. Having worked in Litigation…..

Deneil Brown
Deneil Brown
Chief Operating Officer

Deneil has been immersed in the legal industry for over 25 years and has vast experience across…

Nakita Brown
Nakita Brown
Senior Associate

Nakita is an experienced commercial litigation lawyer, bringing over ten years of legal knowledge…

Shane Ulyatt
Shane Ulyatt
Senior Associate

With a specialised focus on civil and commercial litigation and dispute resolution, Shane expertly…

Sam Nelson
Sam Nelson
Lawyer

Sam’s expertise of commercial and civil litigation ranges from building and construction disputes…

Frequently Asked Questions About Pursuing and Defending claims by a liquidator

If you receive a demand from a liquidator, it is crucial to seek immediate legal advice. A legal professional specialising in insolvency can help you understand the claim, the evidence required, and the potential defences available to you.

A liquidator is appointed to wind up the affairs of a company that is unable to pay its debts. The liquidator has the responsibility to collect and realise the company’s assets, investigate the company’s financial affairs, including any unfair or voidable transactions and disburse the proceeds to creditors.

Yes, a liquidator has the authority to pursue claims against directors for breaches of their duties, or against other parties who have received payments or property from the company under transactions that may be deemed unfair preferences, uncommercial transactions, or insolvent trading.

Liquidators can pursue various claims to maximise the assets available for distribution to creditors, including:

  • Voidable Transactions: Transactions that are unfair preferences, uncommercial, or involve unreasonable director-related dealings.
  • Insolvent Trading: Claims against directors who allowed the company to incur debts while it was trading while insolvent.
  • Recovery of Unpaid Capital: Recovering unpaid capital from shareholders if shares were issued but not fully paid.
  • Property or Income Accruing After Liquidation: Assets or income that become available after the liquidation process starts.
  • Property Disposed of to Defraud Creditors: Transactions made to defraud creditors within a 10-year period before liquidation.
  • Preferential Payments to Creditors: Payments made to certain creditors within six months prior to liquidation that were preferential and unfair to other creditors.
  • Profits by Directors and Related Persons: Transactions where directors or related persons profited from sales or purchases at over or undervalued prices within four years before liquidation.

Defending against a liquidator’s claim can involve several strategies, such as:

  • Challenging the Validity of the Appointment: Contesting the liquidator’s appointment if it was improper.
  • Retention of Title Clauses (Romalpa Clauses): Using clauses that retain ownership of goods until payment is made.
  • Disputing Claims of Insolvent Trading: Providing evidence that directors took reasonable steps to prevent insolvency.
  • Disputing Asset Ownership: Arguing that certain assets do not belong to the company.
  • Negotiating Settlements: Settling claims with the liquidator, especially if the amount is less than $100,000.
  • Defending Preferential Payments: Proving that the payment was not preferential or was made in the ordinary course of business.
  • Legal Proceedings: Bringing or defending legal proceedings if the liquidator is acting improperly.

Yes, decisions or claims made by a liquidator can be reviewed and challenged. If you believe a liquidator’s decision or claim against you is unfounded, you can dispute the claim through the court system. It is essential to act promptly as there are strict time limits for responding to a liquidator’s claim.

A voidable transaction is a transaction that occurred prior to the winding-up process and can be set aside by the liquidator if it meets certain legal criteria. These include unfair preferences, uncommercial transactions, and unreasonable director-related transactions. To challenge a voidable transaction, the liquidator must prove that the transaction meets the criteria for voidability, such as being made while the company was insolvent or intended to defraud creditors..

Under the Corporations Act 2001 (Cth), a liquidator must bring a claim for a voidable transaction within three years from the relation-back day, which is usually the date of the winding up application. However, the liquidator must give notice of the intention to pursue a claim at least six months before the expiry of this three-year period.

Directors can defend against claims of insolvent trading by demonstrating that they took reasonable steps to prevent insolvency. This can include showing that they sought professional advice, implemented a restructuring plan, or took other proactive measures. Additionally, “safe harbour” provisions may offer protection if certain conditions are met, such as developing a plan to return the company to solvency.

Preferential payments to creditors refer to payments made to certain creditors within six months prior to liquidation that are considered unfair to other creditors. These payments can be recovered by the liquidator to ensure equitable distribution among all creditors. The liquidator must establish that the payment was preferential and not made in the ordinary course of business.

Yes, a liquidator can recover unpaid capital from shareholders if shares were issued but not fully paid. This unpaid capital is considered an asset of the company and can be used to satisfy the company’s debts and liabilities during the winding-up process.

Property or income that accrues to the company after the liquidation process starts is managed by the liquidator. This includes assets resulting from successful litigation or other sources of income. The liquidator ensures that these assets are used to maximise returns for creditors and stakeholders.

The role of a liquidator encompasses challenging transactions that involve the disposal of property at undervalue to related entities, which may have occurred within a 10-year period preceding the liquidation, with the intent of defrauding creditors. The liquidator possesses the authority to seek to set aside these transactions with the aim of recovering the assets in question to facilitate their equitable distribution among the creditors.

To defend against claims of preferential payments, one must prove that the payment was not preferential or was made in the ordinary course of business. Evidence that the payment did not give the creditor an advantage over other creditors can also be used as a defence.

Directors and related persons who have made profits by buying or selling company assets at over or undervalued prices within four years before the liquidation can be scrutinised and potentially held liable. The liquidator has the authority to reverse these transactions under section 588FE(6A) of the Corporations Act to prevent improper benefits at the expense of the company’s creditors.

Creditors can protect themselves by ensuring that all transactions are conducted at arm’s length, on commercial terms, and properly documented. Regularly reviewing the creditworthiness of their customers and avoiding unusual payment arrangements can also reduce the risk of a transaction being classified as voidable.

A public examination is a legal process used in the context of insolvency proceedings where a liquidator, or sometimes a trustee in bankruptcy, can compel individuals such as company directors, officers, or other associated persons to answer questions under oath regarding the affairs of the insolvent company or the bankrupt estate. The purpose of a public examination is to investigate the company’s dealings and financial conduct to uncover facts, trace assets, and understand the reasons behind the company’s insolvency.

Under Australian insolvency law, specifically sections 596A and 596B of the Corporations Act 2001 (Cth), liquidators have the power to apply to the court for an order that a public examination be held. If the court grants the order, the liquidator can then summon the individuals involved to appear before the court.

During a public examination:

  • The examinee must answer questions and provide information about the company’s financial affairs, transactions, and other relevant matters.
  • The examinee is required to produce documents if requested.
  • The examination is conducted in a court setting, and although termed ‘public’, it may sometimes be restricted to interested parties.
  • The examinee’s testimony is given under oath or affirmation, meaning that they are legally obliged to tell the truth, and providing false testimony can lead to penalties, including charges of perjury.
  • The process is recorded, and transcripts can be used in subsequent legal proceedings, including in the recovery of assets or in actions against directors for breaches of their duties.

Public examinations can be a critical tool for liquidators to gather information that may not be readily available through other means, and it can assist in identifying potential recoveries for creditors. It can also serve to deter and uncover fraudulent activities or misconduct that may have contributed to the company’s failure.

Please note that the information provided in these FAQs is general in nature and is not intended as legal advice. For guidance specific to your specific situation, we recommend consulting with one of our qualified legal professionals.

Every – Move – Matters

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