Court action has become an indispensable tool in debt recovery again after years on the sidelines as the ATO and banks chase company obligations dating back years.
Insolvency specialist Jirsch Sutherland said companies were being reinstated to pursue legacy debts many of which predated the pandemic blindsiding directors who believed the liabilities had been shelved.
ATO-initiated court action increased significantly in October following a lull in September with winding-up applications and bankruptcy petitions both at their highest monthly level since 2019, according to the latest Credit Insights Report from Alares.
Its report also showed the big four banks had ramped up their court recoveries last month with high interest rates im…
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