International freight at risk – as the supply of new container ships drops and environmental pressure for cleaner fuels increases.

Executives are warning about an increase in shortages of container ships.  While orders for new vessels have been pouring in, the global logistics demand is high, with availability unlikely to stay on par going forward.  Earlier this month, a COVID-19 outbreak partly shut down Ningbo-Zhoushan in China, one of the busiest ports in the world.

A binding financial agreement (BFA) under the Family Law Act will not necessarily survive the scrutiny of a Trustee in Bankruptcy.

In accordance with s. 120(1) of the Bankruptcy Act 1966 (the “Act”), a transfer of property made by a transferor who later becomes bankrupt is void against the trustee in bankruptcy if:the transfer took place within 5 years before the commencement of the bankruptcy; andthe transferee gave no consideration for the transfer or gave consideration of less value than the market value of the property; andnone of the exceptions in ss. 120(2) or 120(3) apply.

We are pleased to announce that Paul Zenkteler has joined our team in the role of Client Relations Executive.

Paul joins us after nearly 8 years as the Divisional General Manager for the Institute of Public Accountants (IPA), where he was pivotal in membership growth and engagement for the SA/NT division.

The recent lockdowns and border closures, seen in every mainland State of the country, are putting almost every small business to the test.  With no JobKeeper to the rescue, the limited Government support is at least being boosted by assistance from our Banks.

This month saw lockdowns in NSW, Vic and SA due to the COVID-19 pandemic and the highly-contagious Delta strain.

A further twist in the Badenoch decision on the effect of the running account on a Liquidator’s preference claim.  When is the commencement date of the continuing business relationship?

Last month, we reported on the judgment of the Full Court of the Federal Court in Badenoch Integrated Logging Pty Ltd v Bryant [2021] FCAFC 64.

Personal insolvency numbers continue to decrease from the pre-pandemic era.  But 1-year bankruptcies are back for discussion.

As part of a larger economic response to the COVID-19 pandemic, since March 2020 the Australian Government introduced a number of temporary changes to bankruptcy law.

Two recent cases have made the Liquidator’s task in recovering preference payments a lot tougher.  Decisions that have been relied on for decades – on the ‘running account’ and third-party payments – have been overturned.

Recovering unfair preferences is a useful tool given to company Liquidators to bring all creditors back to being on a level playing field and treated equally.

Part X of the Bankruptcy Act allows individuals to propose an alternative to bankruptcy (a ‘Personal Insolvency Agreement’).  Whilst it is used infrequently, the process can result in benefits to the individual debtor and a higher return to creditors than bankruptcy.

For individuals, when debt becomes unmanageable, bankruptcy is not the only option available to gain control of the situation.