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NSW Bankruptcy annulment

Discussion in 'Debt and Bankruptcy Law Forum' started by Dan B, 13 June 2018 at 7:57 PM.

  1. Dan B

    Dan B Member

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    A friend was listed as a director of a company that was put in to administration by the beneficial owner. Prior to this the beneficially owner ran up a significant tax bill and a directors penalty notice was issued to my friend by the ato. She was told (and pressured) in to lodging for bankruptcy...she has since realised her error and would like to explore her options of having the bankruptcy annulled. She has significant evidence to prove this guy was the one benefiting from the business and making plenty of money by not paying the taxes. Is there a realistic opportunity for her to challenge this and have the bankruptcy annulled. It's incredibly unfair that she is suffering the consequences of this while the guy who made the money lives in luxury.
  2. Paul Cott

    Paul Cott Well-Known Member
    LawTap Verified Lawyer

    26 May 2014
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    Hi Dan B,

    This does seem to be very unfair to your friend but I'm not sure much can be done now.

    Unfortunately, being a director of a company does make one potentially liable for a lot of things, and director penalty notices really lock a director in to the liability. So being a director is a step that should be very seriously considered before doing so, for a number of reasons.

    I'll be interested to hear what others hear but as I said nothing legally that can be done jumps out at me.

    Paul Cott.

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