Written by Condon Associates on 29 June 2009

As the global financial crisis continues to cause a downturn here in Australia, it’s interesting to note that there has been an increase in both personal and corporate insolvency cases.

Over the many years I have been involved in this industry, one thing remains the same — people who go broke usually don’t have much when it comes to assets, especially assets of value.

Yet, one thing that has all of a sudden changed is the number of “broke” people who supposedly can’t afford to pay their commitments under the bankruptcy or liquidation yet are able to fund a barrage of experts or purported experts to assist them in not meeting their commitments

One of the interesting factors is the number of IP’s that are willing to assist in these circumstances.

If you find yourself in the situation where you need the help of a trustee or liquidator, my first piece of advice is to be open, honest and frank in your dealings with them. There are always solutions to problems and the process is meant to protect both sides — so be honest!

So be sure to rely on the processes that your trustee or liquidator has in place, and work with the people charged with the responsibility of dealing with the situation to ensure that it is resolved in the fastest possible manner. Where the trustee or liquidator is not acting appropriately there are various avenues through which complaints can be lodged.

Always remember — the truth makes a bitter pill easier to swallow.