Skip to content

Debt Recovery Success: Securing $65,000 After Debtor Company Enters Liquidation

Lawyer-in-charge: Melissa Care, Tiffany Craig

When one of our major clients was left unpaid for $65,000 worth of goods supplied, they engaged our Litigation & Dispute Resolution team for help. The timing was difficult, the debtor company went into liquidation immediately after we filed the Statement of Claim, meaning the company itself had no recoverable assets.

Our Strategy

After reviewing the documents, we identified that the company’s directors had provided personal guarantees, though not executed perfectly. We advised our client to pursue recovery through the directors themselves.

Our team:

  • Filed an amended Statement of Claim against both directors

  • Successfully served one director and obtained default judgment

  • Faced difficulty serving the second director — so we pivoted

Under the terms of the personal guarantee, we lodged caveats over both directors’ properties to secure our client’s position.

The Turning Point

The director who could not be served later attempted to sell his property and offered a reduced amount to have the caveat removed. We rejected the discounted offer and demanded the full settlement amount (minus legal fees), with simultaneous payment in exchange for withdrawing the caveat.

The Result

The director agreed — and our client successfully recovered the entire $65,000 without:

  • further court intervention

  • costly enforcement action

  • relying on the liquidated company (which had no available assets)

Outcome

✔️ Full amount recovered
✔️ No further litigation required
✔️ Client protected despite the debtor company entering liquidation

This matter showcases the strength of our strategic approach and our ability to secure results even in high-risk, complex debt recovery situations.

Contact Melissa Care


Contact Melissa today to chat about your Commercial, Local Government and Employment Law matters.