Liquidation and Claw Back of Preferential Payments?

Liquidators will class pref payments into two groups - Related and unrelated. Related ones get more attention as it could be to strip cash from the failing entity to prop up own resources eg paying the wife the 12 months rent arrears for example. Unrelated trading debts can be argued and defences can be claimed. Liquidators are commercial - They have to know its worth the cost to pursue. They can be personally liable for their decisions. Chasing $19K may not be worth pursuit.

Worth discussing client debt issues with your solicitor. Security of Payments is a powerful too if you use it properly and are eligible. Ditto retention of title - But for services its less powerful. Can be a strength for things like stock eg retail products. I had task once of accessing $1m+ unsold stock and taking it as a way to reduce debt. Makes an unsecured debt capable of being semi-secured against what has not sold. Better to get recovery of the stock items at cost than lose all value and get Nil as an unsecured creditor. Issue is you forego profit on former sales as you then have to give credit for stock returned.