Signs appear that directors are being pursued personally for historical company debts, says insolvency specialist
Court actions filed by the ATO and the big four banks are on the rise and its not just current debts in their sights. Business and personal insolvency specialist Jirsch Sutherland says legacy debts are also in the crosshairs, which could put directors even of wound-up companies personally at risk.
According to the latest Credit Insights Report from Alares, Court activity initiated by the ATO in October increased significantly following a short lull in September, with winding-up applications and bankruptcy petitions both at their highest monthly level since 2019. The big four banks also ramped up their Court recoveries duri…
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