NSW Debtor's ability to pay debts

[Julez]

Hi, if a debtor (pty Ltd company) cannot afford paying a debt, does the debt has to be forgiven even though a court judgement is obtained? Is there anyway we can find out their ability to pay before commencing court actions?

The debtor/company is not listed on ASIC for undergoing administration or insolvency, however it has poor credit rating. The company director & most of his companies are currently being taken to the local court for criminal cases listing as Commonwealth Offences.

Many thanks!

 

[CSFLW]

If you have court order? How much is the order for?

 

[Julez]

Thanks for your message. It's a really low value and my lawyer friend suggested not to commence a small court claim because the pty business sounds to dodgy to win & likely having no money to pay.

I would still be interested to know if there is a way to find out the debtor's ability to pay debts, mostly small amount of debts with Pty Ltd.

Any suggestion would be appreciated.

I guess if the revenue isn't published and they are being taken to court then it can be a signs. And if they have poor credit ratings and payment history it is also an obvious sign.

I know it's not worth the effort to fight for the small debts but unfortunately I couldn't help it to fight for the principles.

 

[CSFLW]

Sorry without out knowing the value of the debt, or if there is a judgment its hard to help.

 

[Julez]

i think people will laugh about the value...fortunately most of my debt values are only a few hundred bucks and haven't got judgements. I thought about suing for defamation or discriminations, but my lawyer friend said this debtor sounds too dodgy to sue.

 

[CSFLW]

If you don't have a judgment this makes it difficult.