NSW selling a property with a caveat by a creditor from business going into liquidatio

[Terb]

Hi Everyone,

Our company has recently gone into liquidation and we were looking at selling our personal property to pay off debts personally to creditors due to there not being enough money in the liquidation . We have now found out that there is a caveat on this property from the bank with debt owing from the companies overdraft. We now believe we will have to go personally bankrupt, if this is the case can the bankruptcy trustee have the caveat removed in order to sell the property ?

 

[Tim W]

Hi Everyone,
We have now found out that there is a caveat on this property from the bank with debt owing from the companies overdraft.

How did you find out?

 

[Terb]

Our conveyancer advised us

 

[Tim W]

First things first - in the context of a liquidation of a company, and the possible personal bankruptcy of the director(s), you are well and truly out of the scope of practice of a mere conveyancer.
A layman conveyancer (that is, one who is not a lawyer or an accountant in their own right)
is neither qualified, nor allowed, to give their client financial or legal advice.
Conveyancers are people who do the bare clerical work of an uncontentious transaction.
With all due courtesy... that's not you.
It's time for a solicitor.

How does a caveat work?
Well (in short and simple)...
A lender might lodge a caveat on a property (if in fact that's what it is)
as an indicator (wording on the CT) to LRS that there is a debt,
perhaps secured by a house owned (or part owned) by a director, and
that the Registrar should not deal in the property (such as transferring it after a purported sale)
without reference to the caveator.
---> Is it possible that your business loan(s) is/are secured by your (personal) house?