Voluntary Administration - How to Respond to Claim Served By Creditor?

[Emanuel Papamanolis]

Hi. I am one of 2 company directors which have a claimed served against us from one of our creditors. We have undergone voluntary administration (insolvency option) through BDO two weeks ago. The amount is for $9115.00 + indemnity costs + interest. The date served was 12/08/2014.

I am 60 years of age, have no assets (no home as I'm renting at the moment) and no income as I have no job. What are the implications or the worst case scenario?

We have 28 days from the date served to dispute the claim in the form of a notice (Form 6).
How should I respond? Also, will I need to find out the outcome of the meeting with creditors to find out the extent of payments made to them (if any)?

Thank you in advance.

 

[Sophea]

Hi Emanuel,

Are the claims served directly against you personally as directors or against the company? I.e. do the creditors have grounds to pierce the corporate veil to sue you personally?

 

[Emanuel Papamanolis]

Yes they are seved directly to myself and the other Director. There were a small handfull of companies that required directors guarantees in order to open a trading account with them at the time).

 

[John R]

Hi Emanuel,
I understand that you gave a director's guarantee over trading accounts for your company that has recently entered into voluntary administration.

1. Which state/territory are you located in?
2. Did you receive the demand for payment before or after the company was placed in voluntary administration?
3. Were the alleged debts incurred by your company during your time as director?

 

[Emanuel Papamanolis]

Hi John
The company is in Queensland. We received the claim immediately after the administrators took over and yes we were directors at the time the debts were incurred.