Gartree Thomson Lawyers in Sydney, Australia | Lawyer & law firm

Gartree Thomson Lawyers

Locality: Sydney, Australia

Address: Suite 2504, Level 25, Tower 2, Darling Park, 201 Sussex Street, 2000 Sydney, NSW, Australia

Website: https://www.gartreethomsonlawyers.com.au/

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25.01.2022 If your company receives a statutory demand, there are steps that must be taken to prevent a situation from going bad to worse. The most important thing to remember is that you only have 21 days from receipt to deal with it. To avoid going to court, and having your company wound-up, you must do one of the following:... - Satisfy the debt; - Persuade the issuer of the demand to withdraw it (in certain circumstances, if you have a dispute); or - Apply for the statutory demand to be set aside in accordance with the Corporations Act. Time is of the essence so a phone call or email to your solicitor should be your first move. Your solicitor will consider the facts and advise which of the above approaches is most suitable. For example, if you owe the money, your best option is to just pay the debt. However, if you deny the existence of the debt, or the amount being claimed, you may have good prospects of setting aside the demand. Go here to read the full article: https://www.gartreethomsonlawyers.com.au//what-to-do-when- #statutorydemand #insolvency #debtrecovery #companywindup #creditorspetition

25.01.2022 A pitfall often faced by legal representatives during the Debt Recovery Legal Process is the difficulty of effecting personal service on an individual with documents filed in the Courts. If personal service on an individual is unable to be effected, it can create delays in the proceedings, and cause a person or individual to incur further costs. Local Court Proceedings... Pursuant to Uniform Civil Procedure Rules 2005 10.20 (2)(b), any document in the Local Court required or permitted to be served on a person may be personally served in one of the following ways: 1. Personally serving the document on the defendant; 2. Leave the document addressed to the defendant, at the defendants business or residential business with a person who is apparently of or above the age of 16 years and apparently employed or residing at that address; and 3. Be served by the Local Court, via post to the defendants business or residential address in an envelope marked with a return address. Personal service of a Statement of Claim in the Local Court of New South Wales is often effected on the defendant/s in the proceedings. You may face challenges of effecting personal service on the defendant with documents filed in the Supreme Court of New South Wales as the regulation is more specific. To read the rest of the article: https://bit.ly/3d5Q2Ih For all matters relating to debt recovery please call our office on 02 9922 4111. #debtrecovery #processserving #statementofclaim #debtrecoverylegalprocess

24.01.2022 If you are trying to enforce a debt against an individual who has limited assets, but is employed and receives a wage or salary, you may apply for a Garnishee Order. The order is served on their employer and compels them to pay some of the debtors wage or salary to you, until the debt is repaid. This means the court will direct the employer to pay you directly, instead of the person (the judgment debtor) paying you back. This is advantageous as the person cannot withhold pa...yment from you. There can be some instances where this type of debt recovery may require a different approach: 1. Where the individual is earning a small wage, the court may only order a small proportion of the wages be allocated to the creditor (currently in NSW the person must be left with at least $516.40 of wages). This means that as a creditor, you may have to wait a long time to recover the full amount of the debt. 2. If the debtor stops working and has no source of income, or receives Centrelink or Workcover payments, the court will not grant a Garnishee Order as their income is too low and/or the payments are exempt. If this occurs, one option may be to seek an agreement with the debtor to pay in instalments. This agreement may require the debtor to pay higher amounts than what the Garnishee Order would allow, which means you could be repaid faster. We realise that each case is different, and we recommend discussing your various options to find a solution that best suits your needs. If you need help with recovering a debt from an individual then please give us a call - 02 9922 4111 #garnisheeorder #debtrecovery

24.01.2022 In some instances, it is not commercially viable to obtain an order for discovery in a legal matter. Due to time constraints, the quantum or damages sought, or other considerations, an order for discovery may not be feasible to address a shortfall of evidence. However, there are several ways for litigant parties to obtain further materials that will assist in litigation and satisfy their evidentiary burden, of which subpoenas are one. Subpoenas can be issued to a third party,... who is not subject to the litigation, compelling them to comply with the request. There are generally two different forms of subpoena: A subpoena to attend and give evidence, and a subpoena to produce. To read the rest of this article by Matthew Munzenrieder - https://www.gartreethomsonlawyers.com.au//discovery-vs-sub - Please call our office on 02 9922 4111 - if you require any assistance with regards to subpoenas or legal procedure. #subpoenas #legaldiscovery #

21.01.2022 The cancellation of all remaining paper Certificates of Title in NSW has been announced. If the legislation is passed by the NSW Parliament later this year, the cancellations are expected to occur in mid-2021. On cancellation, a paper Certificate of Title will cease to be a legal document, and will no longer be evidence of title to the land represented in the Folio. The paper Certificate of Title will be replaced with the Control of the Right to Deal (CoRD). For unencumbere...d property, the CoRD Holder will be the registered proprietor (owner). If a property is mortgaged, the CoRD will usually be held by the registered mortgagee. This significant change will impact lenders who have the practice of holding the paper Certificate of Title as security for payment. On cancellation, possession of the paper Certificate of Title will cease providing effective security as the registered proprietor will be free to deal with the property as the CoRD Holder. Lenders should prepare now and consider what alternative security is available. Not all options are suitable for every circumstance. Options that may be considered include: (1) Registration of a formal mortgage on title; (2) Lodgement of a caveat over the title; and (3) Registering a Security Interest over personal property on the Personal Property Securities Register (PPSR). Lenders should also review the wording of security clauses in their standard loan agreements, and update these if necessary to ensure the Lender is able to enforce its security. For all matters relating to property and conveyancing, please call our office on 02 9922 4111 #papercertificates #nswcertifcatesoftitle #cord #conveyancing #ppsr

20.01.2022 We are proud to announce that GTLs Director, Paul Hutchinson, has recently graduated from Arita (the Australian Restructuring Insolvency & Turnaround Association), with an Advanced Certificate in Insolvency. This specialist accreditation keeps our practice at the forefront in the insolvency space, enabling us to offer clients an efficient means of managing financial recovery. Please call our office on 02 9922 4111 to discuss any matters relating to insolvency.... #insolvencylaw #debtrecovery #insolvency #turnaround

20.01.2022 We are currently seeking a solicitor with a minimum of 3 years PQE to join our firm. The successful candidate will gain exposure to a range of commercial and insolvency disputes. Remuneration is competitive and will be negotiated with the selected candidate based on their experience. For further details please see the following SEEK listing: https://www.seek.com.au/job/50290798... #commerciallitigationsolicitor ##PQE #seeksolicitor

19.01.2022 On 24 April 2020 the provisions of the National Cabinet Mandatory Code of Conduct and Commercial Leasing Principles During COVID-19 were enacted in New South Wales through: Retail and Other Commercial Leases (COVID-19) Regulation 2020 [NSW] made under the Retail Leases Act 1994 (NSW) applying to retail leases; and Schedule 5 Commercial leases COVID-19 pandemic special provisions of the Conveyancing (General) Regulation 2018 [NSW] made under the Conveyancing Act 1919 (NSW) a...pplying to commercial and industrial leases. (The Regulations) Both Regulations operate concurrently for a period of six months commencing 24 April 2020 (Prescribed Period). The purpose of The Regulations is to preserve leases and the small businesses that depend on them continuing during the Prescribed Period. Below is a brief overview of The Regulations: Eligibility The Regulations apply to tenants who: Have been adversely impacted by COVID-19; Are eligible for the Federal Jobkeeper Scheme; and Had a turnover of less than $50 million during the 2018/2019 financial year. Outgoings If a landlord receives a reduction for any outgoing recoverable from the tenant (e.g. land tax or council rates) then that reduction must be passed onto the tenant. Read the rest of the article here: https://bit.ly/362smBu #commercialleasing #retailleasing #conveyancingact #covid19regulation

19.01.2022 A question weve been asked lately by business owners is - can I suspend or cancel a business agreement due to COVID-19? To answer this, its important to first assess the terms and circumstances of each agreement or contract to determine a possible outcome. It would be prudent to avoid a termination that may provide grounds for potential damages from the other party.... It goes without saying that these are uncertain times for business owners everywhere. And as each case is different, its essential you talk with legal experts in these types of commercial matters. So contact our office on - 02 9922 411 - if you wish to discuss any details concerning business contract law. Gartree Thomson Lawyers - #Insolvency #Debtrecovery and #CommercialLaw Experts

19.01.2022 What are my duties as a Director of a Company? As a director of a company, you will need to be familiar with your fiduciary obligations and the directors duties prescribed in the Corporations Act 2001 (Cth). We have prepared a brief summary as follows. In general, you must act for the benefit of the company as a whole. Your duty is owed to shareholders. However, if your company is insolvent or is at risk of becoming so, the duty extends to creditors which may also include ...employees with entitlements. This general duty is comprised of the following key directors duties as prescribed by the Corporations Act: 1. Acting with reasonable care and diligence. 2. Acting in good faith. 3. Exercising powers for the purposes for which they were conferred. 4. Avoiding improper use of position and use of information. 5. And, your duty to prevent insolvent trading. Contact us for professional advice regarding a Directors statutory duties and fiduciary obligations. To read the full article please go here - https://www.gartreethomsonlawyers.com.au//what-are-my-duti #companydirectorduties #corporationsact #insolvency #companyadvice See more

19.01.2022 Usually, a contract to purchase real estate will require payment of a 10% deposit on entry into the contract (or exchange). When the purchaser settles, then the deposit is deducted from the purchase price. If the purchaser defaults and the contract is terminated by the vendor, the deposit is forfeited. It is not uncommon, however, for purchasers to request a lesser deposit, usually 5% of the purchase price. Vendors commonly add a split-payment clause in the contract providi...ng that 5% would be accepted on exchange and the remaining 5% would be payable (1) on settlement or (2) on termination of the contract by the vendor. If a purchaser defaults and the vendor terminates the contract, is such a split-payment clause enforceable? Click here to see the full article: https://www.gartreethomsonlawyers.com.au//conveyancing-spl #conveyancing #splitpaymentclause #depositsplitpayment #gartreethomsonlawyers

18.01.2022 The restrictions imposed by COVID-19, including self-isolation and working remotely, has made it difficult for clients and legal practitioners to physically execute documents. The restrictions have increased the need for the use of alternative methods of execution such as electronic or via audio-visual link. However, it should be noted that not all documents can be executed electronically. Documents that can be executed electronically are agreements between individuals and a...greements or Deed with a company. Regarding a company, the assumption contained in section 129 Corporations Act 2001 (Cth): a person can assume that a document has been duly executed if the document appears to be signed in accordance with section 127(1) cannot be relied upon for valid execution if the document is electronically executed by the directors of the company. An informative article on how to minimise risks if a document is electronically executed by directors can be found in the article here: https://bit.ly/2KtGVE5 You can read the rest of this article here: https://www.gartreethomsonlawyers.com.au//electronic-execu #legaldocuments #electronicexecution #COVID-19 #remote-working

16.01.2022 At GTL HQ we have been busy preparing a resource to help illustrate the various steps involved in the debt recovery legal process. We hope you find it useful. You can download the full document here - https://bit.ly/38sD8Rl . . .... #debtrecovery #insolvency See more

16.01.2022 From January 2020, AFSA will enable an individual to apply for bankruptcy or file their statement of affairs online. Heres the link for more details: https://www.afsa.gov.au/bankruptcyonline However, as with all matters relating to personal insolvency and filing for bankruptcy, we recommend you seek advice from a legal professional before proceeding to the next step.... If you have any questions then call us today for a quick chat - 02 9922 4111 . . . #insolvency #bankruptcy #statementofaffairs #debtrecovery #commerciallaw

16.01.2022 Our team recently came across the following article written by Roger Mendelson, which discusses the potential pitfalls of offering credit without having a process in place: https://dynamicbusiness.com.au//how-to-know-if-your-custom If you are experiencing issues relating to slow or non-payment of invoices we can help. ... If you require debt recovery assistance, help redrafting agreements to include collection costs and director guarantees, or tightening your collection processes - contact our offices today on 02 9922 4111. #debtrecovery #insolvency

16.01.2022 Due to our need to expand the team and working space, we are proud to announce our move to the spectacular Tower 2 at Darling Park. Located just a few minutes walk from Sydney Town Hall station and King Street Wharf ferry terminal, the Darling Park precinct offers world-class leisure and dining amenities within a sustainable environment. We look forward to sharing the view with our clients from the new Level 25 offices of Gartree Thomson Lawyers.... Suite 2504, Level 25, Tower 2, Darling Park, 201 Sussex Street, SYDNEY NSW 2000 #darlingpark #movingoffices #sameservice

15.01.2022 Temporary measures were brought into place by the Australian Government in March 2020 for the protection of individuals and small businesses in response to hardship brought on by COVID-19, making it more difficult for creditors to commence and finalise bankruptcy and winding-up proceedings. You can read the rest of the article here: https://www.gartreethomsonlawyers.com.au//insolvency-laws- For more details and support regarding these updated Insolvency Laws, please call o...ur office on 02 9922 4111 #insolvency #insolvencylaws #statutorydemands #corporationsact2001 #bankruptcy

15.01.2022 If you are chasing debt before Xmas, we can commence proceedings on your behalf - so you can enjoy a worry-free festive period! Our fixed-fee legal letters of demand often generate a swift response from the debtor. And, unlike debt collectors, we charge no commission. So call our Debt Hotline - 02 8541 1566 - to get started right away

14.01.2022 QUESTION What dictates the ranking of Creditors in a Court Liquidation? ANSWER Under section 555 of the Corporations Act, all debts and claims proved in the winding-up of a company rank equally except where the Act provides otherwise. If the property of the wound-up company is insufficient to meet the debts and claims in full, they must be paid proportionately. ... Section 556 provides an order of priority in which debts and claims are to be paid. The following hypothetical illustrates how section 556 operates to rank debts and claims in the winding up of a company. Elliot and his wife Jennifer ran a homeware company. The company went into liquidation following a statutory demand issued by a supplier in the amount of $20,500 (which was unsecured). The costs to bring the application and obtain the winding-up order amounted to $3,500. Mr Wax was appointed liquidator and determined that the business should carry on in an attempt to sell existing stock. Expenses in the amount of $15,000 were incurred in order to carry on the business. Mr Wax’s remuneration was $20,000. The only claims Mr Wax received were from former employees of the business... To read the rest of the article: https://www.gartreethomsonlawyers.com.au/po/hypotheticals-4 #CorporationsAct #Creditors #Insolvency #Liquidation

14.01.2022 QUESTION Does a Liquidator need to show that a cause of action against a person probably exists in order to summon a person to attend an examination and produce certain documents? ANSWER Section 596B of the Corporations Act 2001 (Cth) (the Act) allows a person to be summoned for an examination that may be able to give information about examinable affairs of the corporation to determine:... 1. whether there is evidence available to support a claim by the company against the person; and 2. the persons ability to satisfy a potential judgment against them. In the case of Pitman v Park (Liquidator), in the matter of BAM Recycling Pty Ltd (in liq) [2020] FCA 887, it was clarified that Liquidators seeking information from potential defendants only need to show that a cause of action possibly exists (not that it probably exists). If a cause of action possibly exists, the potential defendant and their financial status can be examined. Please see the case here https://www.judgments.fedcourt.gov.au//si/2020/2020fca0887 Please see the following reference here - https://corrs.com.au//federal-court-provides-guidance-on-t CONTACT our office on - 02 9922 4111 - if you wish to discuss any matters relating to insolvency litigation. #legalhypotheticals #insolvencylitigation #corporationsact2001

14.01.2022 Here is the venue where Paul Hutchinson from Gartree Thomson Lawyers will be presenting this Thursday 24 October from 9.00am to 12.00pm, as part of NSWs 2019 Small Business Month Program. Located in the heart of Newcastle CBD at 40 Newcomen Street, the Newcastle Club is one of the oldest and most established private clubs in Australia. Titled 6 Steps to Improving Your Business Cash Flow, the interactive seminar will focus on the Good, the Bad, and the Ugly of managing and i...mproving your business cash flow by using strong credit management practices. Tickets are $20, and payable at the door, with all proceeds going to Westpac Ride For The Chopper charity. Go here to reserve your tickets - https://swagroup.net.au/news/events/ #NSWSmallBiz19 #businesscashflow #cashflowmanagement #debtcollection #debtrecovery #insolvency #newcastleclub

13.01.2022 At GTL we have often found that credit managers and professionals in the collections and debt recovery industries tend to go the easy route. As such, they wrongly believe that issuing a Creditors Statutory Demand for payment is a relatively hands-free and cost effective way to apply pressure to a company to obtain payment. However, there are major questions to ask and pitfalls to avoid:... 1. Is the Statutory Demand based on a Default Judgment? 2. Has the debtor remained silent and therefore unable to display any signs of insolvency (other than non-payment of debt)? 3. Is the debt due and owing and pursuable? 4. Is the debt below the statutory threshold of $2,000? 5. Has the debtor disputed the debt or raised an offsetting claim? 6. Is the debtor registered in a different state to where you are issuing? These are just a few of the points to consider when issuing a Creditors Statutory Demand for payment. From our website you can download our flowchart showing the Legal Process for Debt Recovery - https://bit.ly/38sD8Rl And if you need help with any potential issues in issuing a Creditors Statutory Demand then give us a call - 02 9922 4111 #debtcollection #creditorsdemand #debtrecoverylegalprocess

12.01.2022 Meet Clare, our new Solicitor, and a welcome addition to the GTL team. Graduating in 2019 with Bachelor of Commerce and Bachelor of Laws (First Class Honours), and admitted to the Supreme Court Roll last month, she will be working with our clients predominantly on debt recovery and commercial matters. Out of hours, Clare loves to kayak, ride dirt bikes, and swim heaps of laps in the pool. Please make her welcome.

12.01.2022 The Australian Banking Association (ABA) is releasing new guidelines in order to control assigned debts that are purchased from Australian banks. The recommendations include: 1. Banks being consulted before legal proceedings are initiated against a debtor; and 2. Banks are given a buy back option.... The ABA has also recommended to the Attorney General that the threshold for issuing a Bankruptcy Notice be increased from its current $5,000. In our opinion, raising this threshold may allow exploitation of creditors by debtors, and should therefore be considered with due care. We also contend that the recommendations are inconsistent with section 12 of the Conveyancing Act 1919 (NSW), which states amongst other things, that the assignment is to be absolute, which it cannot be if there is control by the banks and a buyback clause. This will leave any assignment of debt ineffectual and unenforceable, leading to banks not being able to assign their debts. More guidance and assistance needs to be given to assignees to reduce the small amount of misjudgements made when deciding to proceed with a Bankruptcy, and not an increase in the threshold amount. Please call us on 02 9922 4111 to discuss any matters relating to these guidelines. . . #assigneddebts #bankruptcynotices #insolvency #aba

11.01.2022 A lot was accomplished by the Gartree Thomson team in 2019! Heres a quick summary: Our debt recovery litigation portfolio is growing, and the team are getting some great results. We had 400 new litigation files opened in 2019. ... Our Director, Paul Hutchinson, completed an advanced ARITA accreditation and now holds an Advanced Certificate in Insolvency. Our in-house conveyancing star, Ruth Tzouras, completed 11 conveyances plus 25 real property securities and finalised 10 leases (including renewals and lease disputes) in addition to her paralegal duties. There has been a substantial increase in the amount of statutory demands issued and subsequent winding-up of companies this past year. We are continuing to settle the large majority of matters which result in a better return to clients. Arpana Sugrim has grown the secured recoveries side of the business and is making it look easy. And here's a short update on notable matters finalised in 2019 In 2018, Matthew Munzenrieder successfully argued for indemnity costs in the Local Court and then applied for a costs assessment which was riddled with mistakes and unfavourable for our client. After 6 months of wrangling, the mistakes were rectified, and we finally obtained a favourable costs assessment. We settled a significant insolvent trading claim in record time mostly due to the pragmatic approach of the solicitors on both sides. This will result in the liquidator being able to make a dividend payment to creditors. A shareholder dispute that has been running for 3 years has been finalised after the commercial property was sold and the associated litigation and accounts were finalised. Our office will be closed from 5:00 pm Monday 23 December 2019 and will re-open at 9:00 am on Monday 6 January 2020. From all of us at Gartree Thomson Lawyers we wish you a happy and safe holiday period. . . . #happyholidays #2019review #lookingforwardto2020

09.01.2022 Circumstances commonly arise where a Statement of Claim is issued in a court outside of the state where the issuer resides. Currently, the correct process in NSW is to attach the prescribed notice to the defendant which can be found in the Service and Execution of Process Regulations 2018, Schedule 1, Form 1. A recipient can either accept that the matter will be heard in another state, or they can make an application by way of a motion to have the proceedings moved. The co...urt will then decide the most appropriate state for the case to be heard. However, if your case is related to consumer credit, the location where the court proceedings will be heard is prescribed by regulation 36 of the National Consumer Credit Protection Regulations 2010* (NCCP Regulations) *National Consumer Credit Protection Act 2009, s 330 To read the full article go here: https://www.gartreethomsonlawyers.com.au//interstate-servi . . . #consumercredit #statementofclaim #consumercreditprotection

07.01.2022 Our office will be closed from 5:00 pm Wednesday 23 December 2020, and will re-open at 9:00 am on Monday 11 January 2021. We wish you a happy and safe holiday period. For urgent matters we will be available by emailing - [email protected]

07.01.2022 QUESTION Can a builder who has repudiated a building contract, submit a quantum meruit claim for work done under the contract that exceeds the value of the repudiated contract? ANSWER Following the High Court decision in Mann v Paterson Constructions Pty Ltd [2019] HCA 32, the short answer is no. ... In this case, the builder had repudiated the contract and sought payment for work completed. The work completed included 42 variations that had been verbally agreed between the parties. The variations had therefore not been done in accordance with section 38 of the Domestic Building Contract Act 1995 (VIC) (DBCA) and the builder had no contractual right to payment for that work. The Court held that section 38 of the DBCA prohibits relief for variations not made in accordance with that section. The High Court held that in relation to completed work that fell under the repudiated contract, the builder was not entitled to bring a quantum meruit claim, and was therefore limited to relief in the form of damages for breach of contract. To read the rest of this hypothetical written by Jessica Hutchinson, go to: https://www.gartreethomsonlawyers.com.au//gtl-hypothetical #quantummeruit #contractlaw #domesticbuildingcontractact #breachofcontract

07.01.2022 We wish you all a Happy New Year 2020. See you back on deck from next Monday 6 January. Take care and stay safe. . . #2020 #newdecade

07.01.2022 We are pleased to announce that Paul Hutchinson, our head of Gartree Thomson Lawyers, has been accepted as a Professional Member of ARITA, the Australian Restructuring Insolvency & Turnaround Association. This means we can now offer our clients highly developed support in terms of efficient and expert strategies to manage their financial recovery. GTL welcomes ARITA’s engagement in thought leadership and advocacy for public policy, and looks forward to contributing to the mem...bership body comprising academics, accountants, lawyers, and other industry professionals. If you have any questions relating to insolvency or debt recovery matters, then please contact our office on 02 9922 4111 #insolvency #financialrecovery #debtcollection #Arita

07.01.2022 Following the recent escalation in COVID-19 cases, Gartree Thomson Lawyers employees will now be working remotely for the most part. While there may be some slight changes in how you deal with us on a daily basis, the service you receive will remain the same. However, we ask that you please be aware of the following: 1. Face-to-face meetings will be replaced by either telephone or teleconference for the most part;... 2. Face-to-face meetings that have to go ahead will do so following current government guidelines; 3. The courts are transitioning to online services and as a result there are some delays. We will keep you updated on a case-by-case basis; 4. We may ask you to post original documents to a residential address. Please mark these envelopes private and confidential; 5. We are expecting legislation to come into force this week which will: a) require a period of 6 months to lapse from the date of service of Statutory Demands and Bankruptcy Notices, in order to file originating processes or petitions (these are currently 21 days); and b) increase the minimum amounts for statutory demands and bankruptcy notices to $20,000. 6. All of your documents are safely stored in a secure cloud-based system, and whilst we are working remotely, we will be paperless. If you wish to speak to us about any of your matters, or if you have any other queries, please send us an email, or call the office on 02 9922 4111 (between the hours of 9:00am and 5:30pm). In the meantime, take care everyone.

07.01.2022 If you are Chasing Debt before Xmas, we can help by taking immediate action on your behalf- so you can enjoy a worry-free festive period! For a fixed fee our legal letters of demand often generate a swift response from the debtor. And unlike debt collectors, we charge no commission. So call our Debt Hotline - 02 8541 1566 - to get started right away #outstandingdebt #debtrecovery #happyxmas

06.01.2022 Following the coronavirus pandemic, Treasurer Josh Frydenberg has announced changes to the insolvency legislation and liquidator processes to assist distressed small businesses. The proposed changes intends to introduce new processes suitable for small businesses, reducing complexity, time and costs for small businesses into the insolvency framework. The Corporations Amendment (Corporate Insolvency Reforms) Bill 2020 and its changes to the Corporations Act 2001 (Cth) are p...roposed to take effect from 1 January 2021 and marks an extended 6 months lifeline for Australian small businesses. Broadly, the draft Bill introduces the following main provisions: 1. Introduction of Part 5.3B in Corporations Act 2001 (Cth) which establishes an alternative formal debt restructuring process for eligible smaller non-complex businesses; 2. Introduction of a simplified liquidation pathway for eligible smaller companies to allow for a more efficient and cost-effective liquidation process; and 3. Additional measures to ensure that the insolvency and restructuring sector can adequately respond to the needs of small businesses and the proposed small business insolvency reforms. Go here to read the rest of the report: https://www.gartreethomsonlawyers.com.au//insolvency-law-r #insolvency #insolvencylawreforms #liquidation #corporationsact2001 #SBRP

06.01.2022 Wishing you a Happy New Year from the team at GTL! If you need to make urgent contact, then please email - [email protected] Otherwise, our office is open again from Monday 11 January.

05.01.2022 SWAs upcoming seminar - 6 Steps to Improving Your Business Cash Flow - will examine the GOOD (how to avoid bad debtors), the BAD (how the debt process works), and the UGLY (what happens when it all turns legal). Go here to reserve your seat, and check out all the details - https://swagroup.net.au/news/events/ #NSWSmallBiz19 #businesscashflow #debtcollection #insolvency

05.01.2022 Kate Carnell, The Australian Small Business and Family Enterprise Ombudsman, last month announced an inquiry into insolvency practices in a bid to look at the transparency and fairness of the current system. Its early days but already a flood of submissions have been received. The Inquiry, according to Ms Carnell, will shine a light on the insolvency system and uncover if it encourages practitioners, in the first instance, to restructure the small or family business to tur...n it around. We know there is a very low success rate in restructuring Australian businesses under external administration, she says, and the impact of the insolvency process is often devastating for the small business owner. Few small businesses that enter formal insolvency administration are able to navigate their way through the process to reach a restructuring agreement. The inquiry seems to be pointing the finger at insolvency practitioners, when in our opinion there should be more encouragement to engage an insolvency practitioner at the earliest possible opportunity, which is the key to a successful restructure. At Gartree Thomson Lawyers we understand the need for SMEs to get advice as soon as the company is, or projected to be, struggling financially. We may be able to renegotiate agreements and payment plans to allow the company to survive before any intervention by an insolvency practitioner is needed. The company at risk will also need guidance to minimise personal risk from any director guarantees. Call us on 02 9922 4111 to find out more. . . . #insolvency #companyrestructure #insolvencypractitioner

05.01.2022 When purchasing a property, whether it be a home or investment property, with a spouse, partner or group of family/friends, there are several factors to consider. How the property will be owned and the possible future implications of co-ownership can be easily overlooked. Selecting the wrong option can result in unwanted expensive problems later. So what are the options, and what are the differences?... Joint Tenants The property is owned by all co-owners in equal shares. If there are two then they own half each, if there are three they each own one third, etc. A joint tenancy carries with it a Right of Survivorship. If one co-owner dies, his or her share automatically passes to the surviving co-owner/s even if the deceased co-owner has a Will giving their real estate to another person. If all co-owners die at the same time so that it cannot be determined which co-owner died last, the youngest co-owner is deemed to have survived the longest and the whole property will be distributed according to the Will of the youngest co-owner. A joint tenancy can be very useful when purchasing with a spouse or family members where you would want your co-owners to inherit your real estate. If you are purchasing real estate for a business venture, and may not necessarily want your co-owners to inherit your share of the property, a joint tenancy is not recommended. Call our office on - 02 9922 4111 - for all matters relating to property and conveyancing. To read the full article by Ruth Tzouras: https://www.gartreethomsonlawyers.com.au//options-and-diff #conveyancing #propertylaw #propertycoownership #tenantsincommon

05.01.2022 Gartree Thomson Lawyers is currently working remotely until the guidance from the government changes, however we are taking urgent appointments. We trust that for the most part you havent noticed! The Courts have adapted relatively well to accommodate distancing procedures, and there are new procedures in place for executing documents, filing and court appearances to name a few. However we are seeing some hearings being pushed back to accommodate the changes in law and pro...cesses. Please call us on -02 9922 4111 - if you need assistance with any commercial, contract law, conveyancing or insolvency matters.

04.01.2022 Once Judgment has been obtained, one enforcement option a judgment creditor has at their disposal is to issue an examination notice/order on a judgment debtor. An examination order is a NSW court order that requires a person or company representative to attend court to give information about how they will be able to pay a judgment debt. A judgment debt is a debt a court has ordered to be paid. The examination order is part of an examination process designed to give judgment c...reditors more information about the judgment debtor that owes them money. This allows them to work out the most effective way to enforce the judgment debt. Failing to attend a court examination can result in an arrest warrant being issued against the judgment debtor, so it is essential that an examination order be complied with. There are two steps to the examination process: Examination Notice: the judgment creditor sends the judgment debtor an examination notice, which is a questionnaire-style document that asks for information about assets, liabilities, income, and expenditure, and requests copies of relevant documents, such as payslips, tax returns, and bank account statements. Examination Order: if the judgment debtor does not respond to an examination notice within 28 days, the judgment creditor can apply to the court for an examination order. This is a court order that requires the judgment debtor to attend court to provide answers to the examination notice. This is called ‘examination’. To read the rest of this article by Arpana Sugrim - https://www.gartreethomsonlawyers.com.au//the-examination- #nswcourtorder #examinationnotice #examinationorder #judgementdebt

04.01.2022 QUESTION What if I run a repair shop of some kind, and have possession of goods but no secured interest, and the owner of the goods has an outstanding bill? ANSWER If you dont have a secured interest, you are unable to sell the goods to pay the bill (assuming the contract doesnt cover this scenario). You can use the debt recovery process by filing a claim, after which a judgment is obtained.... A writ for the levy of property can then be issued, with the sheriff directed to seize the goods you hold, to be sold at auction. Should there be no other secured creditors, you will then be paid the outstanding bill plus costs, assuming there are sufficient funds from the sale to do so. Contact our office on - 02 9922 4111 - if you wish to discuss any matters relating to debt recovery or commercial contracts. #debtrecovery #commercialcontracts #payingthebill #hypotheticals

03.01.2022 If you have completed work or obligations without an agreement or under a contract that is later deemed to be void, you may be able to recover money under the equitable doctrine of quantum meruit. So what is quantum meruit? Quantum meruit is Latin for what one has earned. The Court can award a reasonable sum for work performed, or goods provided.... A claim for quantum meruit may arise: 1. Where there is a request to render a service without specifying any remuneration; or 2. Where the contract is for a certain piece of work in return for a lump sum, but only part of the work is completed; or 3. Where work completed is outside the contract; or 4. Where work was completed pursuant to a contract, but that contract was terminated, unenforceable or void. What do you need to prove? To be successful in a quantum meruit claim, the following elements must be satisfied: 1. A request for services to be performed; 2. Part or all of services were performed; 3. The defendant received a benefit from the services; and 4. It would be unjust for the defendant to retain the benefit without paying some reasonable remuneration. To read the full article: https://www.gartreethomsonlawyers.com.au//what-is-a-quantu If you are in a similar situation, we encourage you to contact our office on - (02) 9922 4111 - for a discussion on how we can assist.

02.01.2022 Gartree Thomson Lawyers successfully defended a claim against their client in the case of Ange v Contos [2020] NSWSC 64. The case was then appealed, and this summary briefly discusses the appeal grounds that can be used under s 39 and s 40 of the Local Court Act 2007. Facts This was a case where the plaintiff, Mr Ange, alleged that he gave the defendant, Mr Contos a $50,000 loan which he failed to repay. Mr Contos gave conflicting evidence, whereby he had lent Mr Ange $100,0...00, and the $50,000 cheque given to him by Mr Ange was for repayment of that loan. Magistrate Forbes in the Local Court found neither the plaintiffs or defendants evidence to be compelling and dismissed the case on the basis that the plaintiff had not established its case on the balance of probabilities. The plaintiffs appealed to the Supreme Court. Issues A party has the right to appeal to the Supreme Court where: 1. there is a question of law (s 39 of the Local Court Act 2007 (NSW)), or 2. there is a question of mixed law and fact, and the Court grants leave to hear such appeal (s 40 of the Local Court Act 2007 (NSW)). To read the rest of the article (decision of the Supreme Court): https://www.gartreethomsonlawyers.com.au//ange-v-contos-20 To download the Caselaw: https://www.caselaw.nsw.gov.au/dec/5e436c2be4b09d076393de75

02.01.2022 Once Judgment has been obtained against a debtor, one enforcement option available to creditors is to issue a Writ for the Levy of Property. This is an order for a Sheriff to seize and sell, at auction, property belonging to the debtor. The money from the sale of the goods is then used to satisfy the judgment debt owed to the creditor. A Writ for the Levy of Property can be used for 12 months.... Some potential pitfalls to consider before issuing a Writ for the Levy of Property: Whether the debtor has sufficient property to pay the judgment debt. The Sheriff cannot take property that is rented, mortgaged, financed, protected property or belongs to someone other than the judgment debtor. The Sheriff can seize jointly owned real property and sell it (if the debt is over $10,000), however the money paid to the creditor will be proportional to the debtors share of the property. The debtor may file an application with the Court to pay the debt by instalments, and if such an application is granted, the Writ will be stayed. The Sheriff will charge a fee for each attendance at the debtors property, even if no contact is made with the debtor. If the Sheriff is unable to seize any goods to sell at auction, or if the goods seized and sold are unable to satisfy the judgment debt, other enforcement options may need to be considered for the balance. If you need help with issuing a Writ for the Levy of Property then give us a call - 02 9922 4111

02.01.2022 If your company receives a statutory demand for payment of a debt, it is worth considering whether an application should be made for it to be set aside. An application to set aside is made under section 459G of The Act and must be made within 21 days after the demand is served. Is the demand in the correct form?... The requirements of a statutory demand are prescribed under section 459e of the Corporations Act 2001 (Cth) (The Act). Due to the severity of consequences that follow non-compliance of a statutory demand, the applicant creditor is expected to comply with the requirements. Factors to check and consider may include the following: 1. The debt is for at least $2,000. 2. The demand clearly specifies the amount of the debt. 3. The demand provides 21 days to satisfy the debt. 4. The demand is in writing and signed on or behalf of the creditor. 5. The demand was served on the company at its registered address. 6. If the debt is not a judgment debt, it is accompanied by an affidavit verifying that the debt is due and payable. To read the rest of the article: https://www.gartreethomsonlawyers.com.au//how-to-set-aside #statutorydemand #debtrecovery #insolvencylaw

01.01.2022 If a statutory demand is not complied with within 21 days, there is a presumption that the company is insolvent and should be wound-up. The issuer of the demand can then bring proceedings to wind-up a company based on that presumption. Once wind-up proceedings are commenced, you must prove your companys solvency in order to avoid being wound-up. Clearly, it is best to deal with the statutory demand before the situation gets this far. There is no extension to the 21-day pe...riod, so it is important that action be taken before it expires. Furthermore, in the event that you let the 21-day compliance period expires and then pay the debt in full, a different creditor (the supporting creditor) may rely on the presumption of insolvency and bring proceedings to wind up your company. This presumption of insolvency lasts for three months from the date the demand was served. The take-home message here is that you should never let the 21-day compliance period expire and instead engage a lawyer. Call us today on 02 9922 4111 Click here to see the full article: https://www.gartreethomsonlawyers.com.au//what-to-do-when- #statutorydemand #insolvency #debtrecovery #companywindup #creditorspetition #engagealawyer

01.01.2022 Meet Rhiannon, our paralegal whos been with GTL for 12 months. She provides a vital interface between our clients and the team, and is skilled at preparing documents including, claims, writs, garnishees, subpoenas and also attending Court for consent orders. Rhiannon is in her final year of a Criminology and Law double degree at Western Sydney University. She originally wanted to train as a police officer, but became more interested in how the law impacted people from all wa...lks of life, and now wants to specialise in commercial and civil law. Outside of work Rhiannon likes to keep fit at the gym (when it next opens), and taking her pet dog Jasper for lengthy walks. And on Saturday mornings participates in parkrun, where she covers 5kms with other runners in this volunteer-led initiative. #paralegal #consentorders #garnishees #parkrun #gartreethomsonlawyers