• Commercial Law

    Commercial Law

    We are business people as much as we are lawyers. We will take care of the legal documents so you can confidently run your business.
    As your business grows, its risk profile and governance challenges will change. We partner with our clients over the long term to ensure they are in the driver’s seat for success.

  • Dispute Resolution

    Dispute Resolution

    We are in your corner when the going gets tough. Having resolved over 6,500 disputes for business owners have seen it all before.

    Whether you need a skilled negotiator or a fearless litigator, we specialise in delivering commercial results when:

    Customers refuse to pay;
    Suppliers let you down; and
    Business Partners do the wrong thing.

  • Employment & Safety

    Employment & Safety

    The biggest challenge for any business owner, is managing their employees.

    A difficult employee can make you question why you got into business in the first place and be toxic to your team morale.

    We deliver proactive solutions to manage your team via employment contracts, policies and procedures as well as handling employment disputes when they arise.

  • Property & Construction

    Property & Construction

    Property is the key most wealth in Australia.  Whether you are buying, selling, leasing or developing property, you need a lawyer you can count on.

    We can advise on the whole property development process from obtaining finance to development approvals, construction and sale or leasing.

    We also act for the Master Builders Victoria and have extensive expertise in construction contracts and disputes.

  • Family Law

    Family Law

    At Taurus Legal Management we understand the unique challenges clients encounter during family disputes, especially when children are involved. Our family lawyers specialise in handling high-asset cases with a focus on protecting clients wealth, securing their family’s future, and safeguarding the best interests of their children.


The Strategic Side of Bankruptcy

If you are owed money, or (even better) before you advance the money in the first place – you must understand bankruptcy. Whilst bankruptcy proceedings can be expensive, it is often the best way of forcing repayment.

Consequences of bankruptcy

The consequences of bankruptcy are severe and for this reason, bankruptcy is sought to be avoided at all costs. Some consequences extend beyond the actual period of bankruptcy, the most severe consequences include:

  1. Having a trustee in bankruptcy appointed who manages your financial affairs;
  2. If you own a house, often the trustee in bankruptcy will facilitate the sale of the house to pay back your debts;
  3. If you earn over a set amount during the period of bankruptcy, the additional income is taken by the trustee to pay back your debts;
  4. You cannot be a director of a company during the period of bankruptcy;
  5. Your name will permanently be on the National Personal Insolvency Index;
  6. It is often harder to obtain finance after being made bankrupt. This can significantly affect your ability to purchase a house in the future.

Bankruptcy generally lasts 3 years and 1 day, however, it can be extended. In our experience, the term of bankruptcy is extended where the bankrupt fails to provide documents to the trustee. Often the reluctance to provide documents is because the bankrupt is trying to conceal money or assets.

Strategically filing for bankruptcy

We recommend seeking advice prior to entering into business with or investing in a business with a person who has previously been made bankrupt. We recommend this because:

  1. Often the bankrupt has previously been involved in business ventures which have failed;
  2. Becoming bankrupt will generally erase all unsecured debts. For this reason, some people are savvy and use the bankruptcy process to strategically erase debts, rather than repay them.
  3. Becoming bankrupt may show a history or tendency to be irresponsible with finances and investments;
  4. If you are seeking repayment from someone who has been made bankrupt, they will often not have the assets or money to pay you back as their assets were ‘wiped out’ by the previous bankruptcy.

What to do to avoid making someone bankrupt

The key to avoid making someone bankrupt altogether is to get security from them before delivering any services or handing over cash! This means, your terms and conditions or contract should have a clause in it allowing you to have a charge over property and a right to sell that property, where payment is not made. This is particularly valuable where large sums of money are involved or where the relationship will continue over a prolonged period of time.

However, if you are providing services for a smaller amount, you can request the customer to provide trade references. You should call these references to confirm that the customer is a prompt and reliable payer. You can also get trade credit insurance, which can cover the risk of non-payment from your customers.

If you need assistance recovering your debts or dealing with bankruptcy, please contact one of our experienced insolvency team members at Taurus Legal Management on (03) 9481 2000 or info@tauruslawyers.com.au.



Posted by Taurus Legal Management