Tough times - made tougher if no PPSR!
With the tougher economic environment, we are starting to see businesses fail.
As a creditor of a business, there is nothing more alarming than receiving a letter advising that your debtor business has now been placed into administration/liquidation and see your debt turn into c/$!
Imagine how much worse it would be if the liquidator also advised you that they intend to sell your equipment/plant which you had leased to the business or stock which is unpaid and over which you claim title! Or goods being held on bailment/consignment for you in storage being sold by the liquidator on behalf of the debtor.
You might wonder how this is possible, but the PPSR legislation deems some hiring arrangements and retention of title clauses to be "security interests" which must be registered on the PPSR. If you have not done this (or have not registered within the specific timeframes), then you may lose your rights and not only lose your debt, but also lose your plant/stock as well!
Carefully considered terms of trade and good credit control/PPSR processes will assist and our team at Maddens Lawyers can help you.
Contact us today via a call back or on 1800 815 228.
Written by Maddens Lawyers Managing Partner, Fiona Giblin
