The debtor offered payment after you filed.

A late offer asks the creditor to stand down too soon

A creditor files a winding-up application and then receives an offer to pay the invoice in two instalments. The debtor asks the creditor to stop attending court immediately. The creditor wants to recover its money, but must assess the offer’s funding, costs and procedural consequences before agreeing to stand down.

Define the full settlement proposal

Record principal, interest, costs, instalment dates and any security offered. Check whether the debtor seeks a release now or only after performance. Distinguish an immediate cleared payment from a promise of future funds.

Ask for enough evidence to evaluate the proposed timing. A screenshot of a finance application does not establish that the money is available.

Get advice on the pending application

The Federal Court describes hearing and procedural requirements for winding-up applications. Ask your lawyer what steps are needed if an agreement is reached and what remains required meanwhile.

Do not simply miss the hearing because the debtor requested it. Any adjournment, dismissal or other proposed outcome needs to be handled through the proper process.

Source: Federal Court — Winding up proceedings based on an unsatisfied statutory demand

Consider wider creditor involvement

Ask about notices from other creditors and the implications for the proceeding. Section 465B of the Corporations Act allows court-ordered substitution in appropriate circumstances.

A bilateral settlement should not be described as guaranteeing that the company cannot be wound up. The lawyer should assess the actual case and any other party seeking to participate.

Source: Corporations Act 2001 — sections 465B and 468

Verify performance and closure

Retain signed terms, cleared-payment evidence and the actual procedural outcome. Reconcile the amount recovered against the agreed account and costs.

If the first instalment is missed, obtain advice under the agreement rather than assuming the original process can resume unchanged. A carefully documented settlement should make the next decision clearer, not create another uncertain dispute.

Resolve the money and court steps together

Assess the complete offer, including costs and funding.

Keep the court process active until properly changed.

Verify cleared payments and the actual outcome of proceedings.

Call CRP today to coordinate advice on a payment offer received after winding-up proceedings begin.