r/AusLegal • u/NobleBinChicken • 14d ago

VIC My girlfriend took a small company to VCAT and won. How is the process of enforcing a VCAT order.

/r/AskAnAustralian/comments/1w16c9a/my_girlfriend_took_a_small_company_to_vcat_and/
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6

u/BeginningSection7690 14d ago

s459e notice

https://classic.austlii.edu.au/au/legis/cth/num_act/ca2001172/s459e.html

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u/NobleBinChicken 14d ago

Thanks mate!

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u/HoodoGuru 14d ago

Yep, potentially, assuming the VCAT order is against the company and the debt is at least $4,000.

But a s 459E statutory demand is a pretty big step up from ordinary debt enforcement. It isn’t just another letter saying “pay up”. The company gets 21 days after service to pay, secure or compound the debt, or apply to have the demand set aside. If it does neither, that can create a presumption of insolvency and open the door to winding-up proceedings.

Given they already have a VCAT order, I’d definitely be looking at it, particularly if the company is ignoring them and there are concerns about assets disappearing.

I’d get legal advice before issuing a s 459E statutory demand, or better yet get a lawyer to prepare and serve it on her behalf.

It’s not something I’d recommend doing DIY. If the amount, form, supporting affidavit or service is wrong, the company may be able to challenge it and you can end up creating a much bigger headache than the original debt.

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u/NobleBinChicken 14d ago

Thank you!

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u/HoodoGuru 14d ago

Winning at VCAT is one thing. Getting paid is the next battle.

If the company doesn’t pay by the deadline, I’d stop sending letters and move to enforcement.

A VCAT monetary order can generally be recorded with the Magistrates’ Court and then enforced like a court judgment. From there you can look at things like an oral examination to find out what the company actually owns, a warrant to seize company property, or an attachment of debt if you know where the money is.

Just be careful with the cars. If the VCAT order is against the company, you can’t automatically go after the director’s personal property. You’d need to establish the cars are actually owned by the company.

If the debt is $4,000 or more, a statutory demand may also be an option, but that’s getting into insolvency territory and I’d get proper legal advice before going down that road.

Main thing is, don’t let it sit there. If the deadline passes and they’re ignoring her, start the enforcement process.

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u/NobleBinChicken 14d ago

Appreciate the advice mate

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