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ADVISORY CASE STUDIES
We provided advisory services to the director of a company that provided financial solutions to businesses who sold small ticket items. Our client’s company had operated successfully for several years before a combination of environmental and market conditions caused a significant downturn in revenue. After numerous attempts to revitalise the business and diversify, and in keeping with his directorship duties, our client made the decision to wind up his company and appoint a liquidator.
After appointing the liquidator, our client found employment in a managerial role in a different company. While, the salary of the new role covered his living expenses, it did not leave enough money for him to meet his monthly creditor repayments, which were in substantial arrears. However, our client did not want to abrogate his personal creditor responsibilities and take the personal insolvency route.
ACTIONS TAKEN TO ASSIST
We acted on behalf of our client in aiming to settle each of his eight credit providers for the lowest possible amount on the grounds of financial hardship. A family member of our client generously offered a small pool of funds to help settle his creditors. Overall, we were able to reduce our client’s debt from $261,000 to $84,000, a reduction of 68%. Our client now only had to pay 32 cents in the dollar, which he had to do immediately upon receipt of each offer in the form of a lump-sum settlement.
For the ATO, we were able to secure a mutually agreeable payment arrangement. While negotiating with each creditor, we successfully requested for them to not list a default against our client or pursue any recovery action until an agreement was reached.