Running Account Defence to an Unfair Preference Claim

What is the Running Account Defence to an Unfair Preference Claim?

Estimated reading time: 0 minutes

In insolvency, a liquidator sometimes seeks to recover money from a creditor on the grounds that the creditor has received an ‘unfair preference’ in a payment from the debtor company. Here we explain how the ‘running account’ principle can be used by a creditor to push back against a liquidator’s claim of unfair preference.

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A Complete Guide to the Small Business Restructuring Process

Estimated reading time: 27 minutes

Simplified debt restructuring is a new process available as of 1 January 2021 to support financially distressed small businesses. In simplified debt restructuring, an independent professional known as a ‘small business restructuring practitioner’ is appointed to a distressed debtor company to assist with restructuring the company’s debt via development of a ‘restructuring plan’.

Image to article Unfair Preference Claims

What are Unfair Preference Claims by a Company Liquidator?

Estimated reading time: 5 minutes

In this article, we look at the definition of ‘unfair preference’ claims — a mechanism used by liquidators to claw back some prior payments to creditors. We also look at the available defences for an unfair preference claim, and how the new ‘simplified liquidation’ procedure for small businesses deals with unfair preference claims.

Ilustration to the article "What is Wage Theft?"

What is Wage Theft?

Estimated reading time: 5 minutes

Wage theft is the underpayment of employees. Wage theft can occur in a number of ways, for example underpaying wages, not granting entitlements or refusing to pay penalty rates, superannuation, overtime or commissions.

The image shows a scene from the court with the man examination by videoconference

Section 77C Bankruptcy Examinations Are Now Allowed Via Videoconference

Estimated reading time: 5 minutes

An important part of the personal bankruptcy process in Australia is the ability of those overseeing the process to ‘examine’ the individual undergoing bankruptcy or any other relevant person. This is the ability to question that person or those persons, under oath, about their financial affairs, fraud or involvement with the bankrupt. This power is contained within section 77C of the Bankruptcy Act 1966 (Cth) and is sometimes known as a ‘private examination’.

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Business Survival Series: Respect Your Creditors

Estimated reading time: 5 minutes

Having creditors is a necessary element of business. But those lines of credit extended to your business do not come without some reciprocal obligations. Respecting your creditors should always be a priority. It is vital that you maintain a strong creditor-debtor relationship, even as situations change and become more difficult.

Starting a Business Misconceptions

Business Survival Series: Misconceptions About Starting a Business

Estimated reading time: 4 minutes

Starting a business can be a mystifying process. It involves overcoming complex and seemingly never-ending challenges that can be frustrating to navigate and sometimes will not lead to a quick return. As such, when considering whether to begin such a difficult undertaking, it is immensely important to clarify some of the ideas surrounding starting a business.