Insolvent Transactions or Voidable Transactions as it is commonly referred to is when a creditor has received payments over and above what they would have normally received in a liquidation which creates a “preference” to that creditor. This allows a liquidator to claw the payments received back which are then applied to the liquidation according to Schedule 7 of the Companies Act 1993.
There are a number of defenses that can applied when defending a insolvent transaction claim from a liquidator. However, these only apply if the defenses are raised within the required time frame from when a insolvent transaction notice is served on a creditor.
If you need assistance to defend a insolvent transaction claim from a liquidator, contact us to discuss how we can help.
Other areas in Consulting: Directors Duty Breaches, Overdrawn Current Accounts; PPSR Priorities and Enforceability
