When a customer will not pay, or a company you deal with is heading towards collapse, the pressure lands on you quickly. Cash stops moving, staff and suppliers still need paying, and the people running the business tend to carry the worry home with them. We understand that side of it. We also understand that the answer is a commercial one: recover what you can, as quickly as you can, at a cost that makes sense.
Hendersons Legal has acted in debt recovery and insolvency matters for more than twenty years. Our clients include creditors chasing unpaid accounts, company directors, and business owners trying to get on top of their finances before things escalate. Whatever side you are on, you deal with an experienced lawyer who tells you plainly where you stand and what it is likely to cost.
What we help with
Our debt collection and insolvency work covers:
- Debt collection and recovery, from the first demand through to judgment and enforcement
- Letters of demand and creditor’s statutory demands
- Winding up applications in the Supreme Court of Victoria
- Preference payment and uncommercial transaction claims
- Directors’ duties and insolvent trading exposure
- Securities, and selling property to satisfy creditors’ interests
- Negotiating settlements and preparing the documentation
- Advice on insolvency options, and negotiations with banks and other creditors
Who we act for
We act on both sides of debt and insolvency matters. In any given week we might be recovering money for a creditor, advising a director about personal exposure, or defending a company going through the winding up process. Our clients include secured and unsecured creditors, liquidators, receivers and managers, voluntary administrators, trustees in bankruptcy, company directors, and individuals or businesses facing real financial difficulty.
The debt recovery process, step by step
Most recoveries follow a familiar path, and we handle each stage for you so nothing stalls:
- Letter of demand: a formal written demand setting out what is owed and what happens if it is not paid. A well drafted demand often prompts payment on its own, without the expense of court.
- Creditor’s statutory demand: for a company debt of the statutory minimum (currently $4,000) or more, we can issue a statutory demand. If the company does not pay, or apply to set it aside, within 21 days, it is presumed insolvent, which opens the door to winding up.
- Issuing proceedings: where payment still does not come, we start recovery proceedings in the appropriate court.
- Judgment and enforcement: once we obtain judgment, we enforce it through options such as warrants of seizure and sale, garnishee orders, and charges over property.
- Winding up or bankruptcy: for debts that remain unpaid, we can apply to wind up the company or to bankrupt the individual behind it.
When a matter moves past demands and into court, our litigation lawyers handle it. You can read more about how we appear for clients on our Court and Tribunal Representation page.
Commercial insolvency and Supreme Court winding up
This is work we do a great deal of. We have extensive experience with commercial insolvency, and with winding up proceedings in the Supreme Court of Victoria. We act for creditors seeking to wind up a company, and for companies defending a winding up application or applying to set aside a statutory demand.
We prepare and serve statutory demands, bring and defend winding up applications, and appear in the winding up list ourselves, which often saves you the added cost of briefing counsel. Our office sits a few minutes from the Court, so when a matter needs someone there in person, we can be there.
Corporate insolvency
We advise companies, directors and insolvency practitioners across the range of corporate insolvency processes, including voluntary administration and deeds of company arrangement, creditors’ voluntary liquidation, court-ordered winding up, and receivership. We advise directors on their duties and their potential personal liability for insolvent trading, and we act on voidable transaction claims such as unfair preferences and uncommercial transactions, and on recovering company property.
Personal insolvency and bankruptcy
For individuals and sole traders, we advise on bankruptcy and the alternatives to it, including Part IX debt agreements and Part X personal insolvency agreements. We explain what each option really means for you, negotiate with banks and other creditors, and, where it fits, guide you to a suitable trustee. We also act for creditors recovering debts through bankruptcy proceedings.
Frequently asked questions
What is a creditor’s statutory demand?
A creditor’s statutory demand is a formal demand for payment of a company debt of at least the statutory minimum (currently $4,000). If the company does not pay, or apply to set the demand aside, within 21 days, it is presumed to be insolvent, which can support an application to wind the company up.
How long do I have to recover a debt in Victoria?
Most debts are subject to a six-year limitation period, running from the date the debt becomes due. Acting early protects your position and improves the prospects of recovery, so we recommend getting advice as soon as a debt becomes overdue.
What is the difference between liquidation and bankruptcy?
Liquidation, also called winding up, applies to companies. Bankruptcy applies to individuals. Both involve an independent practitioner taking control of assets to pay creditors, but they run under different legislation and processes.
Can company directors be personally liable for debts?
Directors can become personally liable in certain situations, including for insolvent trading or where they have given personal guarantees. We advise directors on their duties and how to manage these risks.
Speak to a debt recovery and insolvency lawyer
If money is owed to you, or your company is facing a demand or a winding up application, the sooner you get advice the more options you have. Call (03) 9629 2211 or complete our online enquiry form, and we will get straight back to you.
