Insolvency & Bankruptcy Lawyers

Insolvency litigation in New South Wales (NSW), Australia, refers to legal proceedings that involve issues related to insolvency. Insolvency occurs when an individual or a business entity is unable to pay off their debts as they become due. It often leads to bankruptcy for individuals and liquidation or administration for companies.

Insolvency litigation encompasses a range of legal actions that can arise in the context of insolvency proceedings. Some common types of insolvency litigation in NSW, Australia, include:

1. Preference Claims: These are claims brought by liquidators  (appointed to wind up a company) against creditors who received payments  or benefits from the insolvent company shortly before it went into  liquidation. These payments might be deemed as preferential treatment, and  the liquidator might seek to recover them for the benefit of all  creditors.
2. Voidable Transaction Claims: Liquidators can challenge certain  transactions that took place before the company's insolvency, such as  transactions intended to defraud creditors or transactions at undervalue.  These claims aim to recover assets for the benefit of the company's      creditors.
3. Unfair Preference Claims: Similar to preference claims, these  involve transactions made by an insolvent company that give a creditor an   unfair advantage over other creditors. These transactions can be undone by  the court, and the creditor may be required to return the received funds  or assets.
4. Director's Duties and Misconduct: Insolvency litigation can involve claims  against directors for breaches of their duties, such as trading while   insolvent or using company assets for personal gain. Directors can be held  personally liable for company debts in some cases.
5. Insolvent Trading Claims: Directors of a company have a duty not  to trade while the company is insolvent. If they breach this duty, they  can be held liable for the debts incurred during that period.
6. Cross-Border Insolvency: This involves cases where a company or  individual has assets or creditors in multiple jurisdictions. Insolvency  litigation in such cases can involve coordination between courts in  different countries.
7. Winding Up and Liquidation Proceedings: These are the formal processes by which  a company's affairs are wound up and its assets are liquidated to pay off  its creditors.
8. Debt Recovery and Enforcement: Creditors can initiate legal action to  recover debts owed to them by an insolvent company or individual.

Insolvency and Bankruptcy litigation in NSW, Australia, is governed by various laws and regulations, including the Corporations Act 2001 (Commonwealth), Bankruptcy Act 1966 which outlines the legal framework for insolvency and related litigation. 

Navitas Legal can assist you with commencing   Insolvency or Bankrupcty proceedings in the Federal Court of NSW or Supreme Court of NSW for the recovery of your debt. We are associated with Liquidators who can assist with the liquidation and realisation of assets, once the necessary Orders are made by the Courts