How we have helped mentor our clients and dealt with legal and settlement matters
Clients facing wind-up by ATO assessment claiming $480,000.00 thousand we achieved 6 week adjournment to prove solvency and again adjourned for a further 2 weeks to allow for filing amended BAS Reports and ask for the matter to go to trial. At trial provide solvency and that the ATO could not quantify the PAYGE nor Supa debt. Settle for client admitting to owing $63,000.00 which we paid on the day, by borrowing from third party lender.
Note we have several more currently in court on same basis.
Client rang saying he had been liquidated and the liquidator was pursuing him for trading whilst insolvent for the sum of $362,000.00. Settled out of court by way for negotiating a Deed Of Settlement and Release on behalf of the director settlement sum on terms $98,000.000 thousand over 12 months.
Note currently negotiating several more claims by liquidators against directors.
Company in liquidation already, we negotiated purchase of assets, inclusive of web-site, phone numbers, data base and work in progress, plus use of name. Contacted all creditors seeking support and their proxy to attend meeting and vote the sale be acceptable as it provided a financial benefit to creditors.
We applied to court to have a provisional liquidator appointed,, then assisted in proving our client was oppressed and unable to fulfill his role of director. Brokered a deal with the provisional liquidator to buy the other shareholder out. We also kept all creditors involved of the development and arranged for the outgoing shareholder to be indemnified by creditors.
Note shareholder disputes are common thing, but generally handled wrong as it is should always be handled by pre-insolvency specialists not lawyers
ATO Audited owner without informing the owner of the Audit, nor did they contact the Accountant. The first anyone new of it was when the ATO sent a stat-demand seeking $138,000.00 thousand in undeclared earnings and applied penalties of 70% on the claimed amount. We filed Objection and Voluntary disclosure, plus reviewed, amended BAS reports previously lodged. Result all penalties removed, Quantum of debt agreed upon and matter settled without court.
We are approached on a weekly basis by clients threatened with bankruptcy and or are already bankrupt. Unfortunately non have been told that Bankruptcy is a Word not a Sentence. Our role is to educate clients and assist them propose a Section 73 so they can annul the bankruptcy, to achieve this there are several things that are done;
i)Contact the Trustee and ask if he has any reason not to allow a proposal
ii) write to all creditors that are noted in the Statement of Affairs seeking their agreement that we start brokering a deal to settle the debt
iii) Once creditors consent we assign their debt into a creditors debtors trust on a pro-rata basis
iiii) The have the Creditors Unit Trust provide us with the proxy to vote at the Section 73 meeting
iv) Draft Section 73 proposal and present same to Bankruptcy Trustee and seek a date for the meeting
We have done many of these this year and have been successful in every case, as its always in the interest of creditors to receive a financial benefit as to receiving nil return.
Are we liked by the ATO Credit Houses or Litigators? Definitely not and that’s mainly because we remind them that the legislations written are to provide to everyone an opportunity to Justice and an opportunity to be heard by all that are impacted by a claimant’s action and given the chance to participate. There is no legislative Act written nor imposed that allows for any one claimant to disadvantage the majority of creditors in any matter