When a property is sold and there is a mortgage shortfall, the bank claims on the insurance policy and the insurer then chases the borrower for the mortgage shortfall debt.
We were recently referred a client who was being pursued for a debt by Timbercorp Finance Pty Ltd (‘Timbercorp’). The debt totalled over $130,000 including interest, which was continuing to accrue.
It is a common scenario that when a business leasing premises from someone fails there will be a significant debt owed to the landlord. This is the case because usually under the terms of the lease, landlords can claim rent for the remaining period of the lease (i.e. another 4 years after the lease has… Read more »
It is a common scenario that when a company goes into liquidation the directors will have debts they are liable for because of personal guarantees.