Draft for review
When a customer or builder collapses

The failed builder disputes what it owes you.

A failed builder's dispute still needs evidence, but the response route changes with the insolvency process. Present the claim to the practitioner rather than arguing only with former staff.
Corporate Recovery Partners
Corporate Recovery Partners Stacy presenter with the headline: The failed builder disputes what it owes you.
01 / 06

The builder's old objection follows the claim

A waterproofing contractor lodges an unpaid account after a builder enters liquidation. The liquidator's records contain the builder's earlier allegation that part of the work was incomplete. The contractor has inspection records showing completion but assumes the old dispute ended when the builder failed. It now needs to support the claim in the correct process.

02 / 06

Identify the precise disputed component

Ask which amount or obligation is challenged and what information supports the objection. Separate a recorded allegation from a formal decision on your claim. The next response may differ.

Keep the original complaint and your earlier answers. A new summary should explain the history without removing facts that remain uncomfortable or unresolved.

03 / 06

Build evidence around the issue

Match the contract, scope, inspection records, photographs and approved changes to the specific dispute. Reconcile payments and credits so the amount claimed can be followed.

Where technical responsibility remains contested, consider an appropriately scoped expert assessment. Do not spend on a broad report until you understand what question the practitioner actually needs answered.

04 / 06

Use the appointed process

Send the evidence to the practitioner through the requested channel and ask what further information is needed. ASIC explains that proof of debt requires supporting material and insufficient evidence may lead to rejection.

Do not assume the former director can now approve payment or resolve the claim for the company. Confirm who has authority under the actual appointment before relying on an agreement.

Source: ASIC - Liquidation: A guide for creditors

05 / 06

Respond promptly to a formal decision

If a rejection or reduction notice arrives, retain it and seek advice on the stated review route and timing. More informal correspondence may not preserve an appeal opportunity.

Keep the claim assessment separate from dividend prospects. Even a well-supported admitted debt may receive little if funds are unavailable; plan the business's cash on that uncertainty.

Source: ASIC - Liquidation: A guide for creditors

06 / 06

Answer the dispute through the practitioner

Isolate the objection and submit a reconciled claim with relevant evidence.

Distinguish requests for information from formal decisions and obtain timely advice where necessary.

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