Voluntary Administration Info

[AgentMail]

Yep, so I finally had a bad paying customer!

After avoiding my calls for weeks, I managed to get hold of him today, and he told me the company has gone into voluntary administration, but he wont give me the details of the administrator.

Is there a way I can find this information out online anywhere? I have tried typing in the company name, trustee name etc. but nothing seems to come up.

It is so frustrating as I was being flexible to help them out, and I don't even care about the money, but to be played a fool like this just makes my blood boil, now I feel I need to try and recover the money just so that I can feel better about the situation!

Any advice appreciated

[Couple It]

If he won't give you the name, then I wouldn't believe him.

I'd give the debt to a debt collection agency. Most have a policy that they don't get paid unless you do so you've really nothing to lose.

Get tough and get your moneys owed !

Wendy
who's in a decidedly less-than-usually-happy mood today hehehe

[BranchingOut]

You can definately check if they are in liquidation by checking their registration info on the ASIC website.

If they are, maybe give ASIC a call and ask them how you might get info on who the liquidator is - they may point you to someone who will extract the records but at least you will get the info.

Hope you get it resolved

[interAccounts]

Just to be clear, Voluntary Administration is not liquidation - it is the step beforehand that allows the business to try to sort out its financial issues and hopefully save it. Liquidation will only occur if the voluntary Administration fails.

The Administrator will be a registered liquidator and they are obligated to contact all the creditors of the company within the few days of being appointed. ASIC needs to be advised within 24 hours of the administrator being appointed, and they update the records on their website immediately - so that's the first point of contact to check if you haven't heard directly from the administrator.

You are one of their creditors, so you will hear from the Administrator in the very near future - that's if what the company told you is true.

I agree with Couple It - it would be best to contact a debt collection agency for them to follow it through - even if the company is in voluntary administration. Don't stop chasing the debt until you have received payment.

[JamesMillar]

One clarification to the above - proprietary companies do not need to use a registered liquidator in VA. The problem of course is that unqualified administrators don't always have a great handle on Corps Act due process. If you don't receive any communication then contact ASIC to find out who the administrator is (or buy a detailed company search extract online). You may find that it's not actully in VA and that this is a ploy to try and avoid debts.

[yourvirtualboard]

Never good to have a non-paying customer but that's business, sometimes it does happen (count yourself lucky it's your first). Unless a substantial amount is involved I'd avoid making it a personal crusade because that just distracts you and uses up energy that could be better spent elsewhere.

By now I guess you have seen that the longer the debt goes unpaid, the less likely you are to recover. Start calling early and often when customers exceed agreed terms.

[AgentMail]

Hi all, thanks for all the helpful info. My first issue is that I cannot identify the companies acn. It was a real estate agent, and an Ann search shows a few different entities including a trust (which is a common setup in real estate)

I have also found out that the owner is a director in several other companies, so I think it may well be a ploy, as wouldn't va jeapordise his ability to be a director (or at least potentially)

What makes it worse is that this guy is a qualified solicitor turned real estate, so knows how to work the system.

I was thinking my next step, if the va turns out to be a smoke screen was to go through the small claims tribunal process. Having read up about this it seems to be low cost and all I have to do is serve Jim the papers from the small claims court. That way I don't have to give away 30+% to a debt collection company.

Any thoughts on this idea, or should I just turn it over to debt collectors?

[JacquiPryor]

I am not sure what an "ann" search is that you referred to, but have you searched the entity's name at ASIC? If it is a Company it will come up in the ASIC database with the ACN. It may be that the real estate name is a trading name rather than company? In which case you would need to look further (by way of extracts) to figure out who is operating the trading name etc - but, you could be met with Trusts and un-named trustees. - Are you in a position to have the client confirm what's going on in writing? Maybe send him an email to confirm your discussion & understanding and have them confirm the entity details that has actually been entered into VA?

As previously posted, ASIC records will also be updated when an administrator or liquidator is appointed and you will see in the company status that it's under administration rather than 'registered'.

As to jeopardising his ability to direct other companies, the answer is 'maybe'.. it would depend (most likely) on whether he has previously wound up companies before this one and probably what the financial state and situation is. If this is the only administration/liquidation he has ever been connected to, based on my experience it's unlikely they would ban him from directing other companies -
I used to work for a company that entered VA - the director was also director of another company at that time and has since registered and directed several more - it's only now that one of the companies is in liquidation by court appointment rather than VA (and this has happened about 6 years after the VA) that someone has finally made an application to ASIC to prevent him from directing further companies.

As others have mentioned, you should receive correspondence in due course that the administrator will send to all creditors and they will likely then ask you to submit a 'proof of debt' form that outlines what you are owed and then this will be accounted for in their future reports and statements etc. If there's money left over then you might get some money.


Just my 2c Good Luck!

[Couple It]

Personally I'd go to a debt collector now.

It may be 30% of your outstanding account, but how much of it do you have now? And how much time will you waste on chasing it yourself?

I'm with Harry...use your energy elsewhere in your business.

Wendy

[themot]

Debt collectors, solicitors etc cost money and may not be worth it anyway.

From my experience when a company goes into administration or liquidation especially a small player like your guy your best off just cutting your loses and moving on. The order of payouts will be The Liquidator > Employee's > Secured Creditors > Unsecured creditors like you. They go bust for a reason, because there is not sufficiant funds to cover the debts.

What makes you think there will be a pot of gold left for you when there will be nothing left?

In my experience it's very rare an unsecured creditor gets anything and if you do it may only be 5 or 10 cents in every dollar. Hardly worth hoop jumping your going to have to do.