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NSW Default Judgment and Liquidation Help

Discussion in 'Commercial Law Forum' started by Joe, 29 May 2014.

  1. Joe

    Joe Member

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    I'm in need of some desperate advice, I hope someone might be able to donate a few minutes of your time.

    I have a superannuation fund in which we own the unit, and my company leases the unit from the super fund.

    We owed some money from strata title management but when we went to court to apply for time, we had a default judgement awarded against us for approx 3k.

    My wife updated our company records and all correspondence for court dates came through to our office but they sent through the windup notices to our personal address from ASIC which was wrong and we didn't get the mail until we found out we were already in liquidation.

    I met the liquidators and they are telling me that it is going to cost over $20k in legal fees to get this finalised and even if I pay the bill, they are still going to sell the property.

    I'm about to file a notice 20 and 40 but I was hoping I could get thoughts from someone who knows the in's and out's of it?

    I cannot tell you how much strain this has put on my family so if anyone could kindly give me a few minutes of your time, I would be most appreciative.
     
  2. Paul Cott

    Paul Cott Well-Known Member

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    Alex what state are you in? I am in Victoria and the notices you mention - notices 20 and 40 are not familiar to me.

    Also, why did you get default judgment entered against you? Did you not attend court? And why? Would you have had a defence to the debt or did you just want time to pay it? And who are the liquidators? I know some.

    Paul.
     
  3. Joe

    Joe Member

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    I'm in NSW, when we attended court, we were trying to get extra time but we were mistaken in thinking we could do that and the judgement was awarded against us. I figured that we had some time, I know how hard it is to get money out of companies who haven't paid and I'm still in shock that it has made it this far. Bottom line is that I stuffed up and I just can't get my head around it. I think they deliberately chose to send the information to the new address as they somehow knew that we didn't live there.

    It's extremely frustrating as all the court documents went to our company address but the windup orders went to a completely different address.

    Thanks for your quick help.
     
  4. John R

    John R Well-Known Member

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    Hi Alex,
    I assume that you are referring to Form 20 - Notice of Motion and Form 40 - Affidavit?
    http://www.ucprforms.lawlink.nsw.gov.au/ucprforms/index.html

    1. Given the amount was $3K, was the matter heard in the Small Claims Division of the NSW Local Court?
    2. I assume that the 28 day period to respond to the default judgment order has passed given that liquidators have been appointed? If not, you may review the "Responding to an application to set aside default judgment" section on the NSW Law Assist website.
    3. When was your company placed into liquidation?
     
  5. Joe

    Joe Member

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    I think it was the 24th of April. As soon as I got the liquidation notice, I contacted them straight away. I have met with the liquidators and they are systematically trying to almost extort me it seems. I just for the life of me can't understand why I can't just pay the fees and move on. Now I have to prove all sorts of stuff, my wife is ready to spiral into ...

    I'm about to lodge the forms tomorrow and I am going to meet with her father to discuss options.

    I can't sleep over this, I'm a wreck. I assume it was small claims as it was my wife who went there.
     
  6. Joe

    Joe Member

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    Hi, this has progressed badly and I really need some help or at least a second paid opinion now as I'm starting to wonder if my commercial lawyer is actually doing the right thing by me. Is there someone I could run something past someone who may be able to help.

    Thanks for any help, i'm in sydney guys
     
  7. Rod

    Rod Well-Known Member

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    Liquidators >> Know the law, are very persistent, have very voracious appetites for other people's money and are know to swallow whole companies with millions in assets and spit out dried up husks.

    You are in serious trouble. Need to try and get them removed on a technicality. Remember part of this your fault because you did not have up-to-date information at ASIC. Find out if the action against you was bound by law to send something to the company address that you never received.

    And move quickly. The longer the liquidator is involved, the harder it becomes. If your current commercial lawyer doesn't have the technical experience you need, ring around and find a lawyer that deals with or has experience with liquidating companies. At first glance it seems the failure to update ASIC may cost you a lot of money.

    Sorry I don't have good news :(
     
  8. lawanswers

    lawanswers Moderator
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