VIC Company Owes Me Money - Should I Cancel VCAT Hearing?

[DSTR16]

The Company (Partnership) owes me money for failed kitchen reno (19K paid work done 4K max). They have not taken a required insurance (the job if over 16K).

After failing negotiations through Consumer Affairs Victoria, I lodged a claim in VCAT. The VCAT hearing scheduled for October 2016. Both Partners were made bankrupts in the beginning of September - Trustees appointed.

What does "appointed joint and several trustees" mean?

I have sent requested receipts and contract to Trustee (these documents were not on their files) but do not know what are next steps and what to expect.

Shall I cancel the VCAT hearing ?

 

[Sophea]

If it's a partnership you are suing and both partners are bankrupts then your only option is to prove in the bankruptcy. You cannot bring legal proceedings against them. After bankruptcy, unsecured creditors cannot enforce a remedy against the bankrupt or property of the bankrupt.

 

[DSTR16]

Thank you for your reply.

I understand that VCAT hearing will not go ahead. I sent an extract of Bankruptcy from AFIC to VCAT. Will they cancel the hearing or I have to do it?

I sent also copy of receipts and expenses to appointed Bankruptcy Company and I was told they did not have many assets. I have a feeling that there is not much more I can do in this situation and there is a slim chance of getting my money back?

Any other avenues to explore?

 

[Sophea]

Hi DSTR16, I'm not entirely sure what the procedure is with cancelling VCAT hearing, maybe just give the registry a call and ask them. They are usually very helpful. All you can do here is prove in the bankruptcy and get paid x cents in the dollar - whatever that ends up being. Unfortunately they are your only options if the debt is unsecured.

 

[DSTR16]

Thank you. VCAT received my email and a member will do the ruling before hearing date. No idea what sort of ruling, probably just cancellation.

What do I need to do to prove in the bankruptcy? Any idea of usual time frame to finalise bankruptcy process?

I am presuming my money is gone?

 

[Sophea]

You will need to contact the company's liquidator or individual's bankruptcy trustee and request a proof of debt form which you can fill out. You will also need to provide evidence in the form of contracts and correspondences you have had with the debtor to prove your debt.

It can be a protracted process 6-18 months depending on various factors, how many creditors etc.

 

[DSTR16]

Thank you for your valuable information.

Should I send the POD form now or after Trustees request it? I read somewhere that the form should be sent only if requested Trustees or AFIC? Is this correct?

I have already sent all receipts and invoices but not the form. I have sent emails to the Trustees but have not received any replies. What is their responsibility towards me?

Shall I just wait patiently for them to contact me or is it me who should be pushing for information and updates on progress?