The sold business says money is held for creditors in a separate account

A separate account is mentioned as reassurance

Your debtor has sold the business and says money is being held to pay creditors, including you. Ask for an authorised explanation of the arrangement before treating your invoice as covered. The existence of a separate account does not by itself establish who owns the funds, who may direct payment or whether your particular claim has been accepted.

Identify the holder and the instructions

Request the holder's identity, the relevant amount and the conditions said to apply to your account. Provide this information to your lawyer. Distinguish a debtor's informal statement from confirmation issued by someone authorised to explain the holding arrangement. Do not seek confidential sale information you are not entitled to receive or demand access to another party's bank account.

Read the payment arrangement in context

Business.gov.au identifies payment method and sale conditions as matters addressed in a business sale contract. Ask the lawyer what evidence is needed to assess the claimed creditor-payment mechanism. It could involve conditions or competing instructions that you have not seen. This article does not determine trust rights, priority or whether the holder owes you a duty.

Source: business.gov.au: Sell your business

Consider a hypothetical held amount

Imagine a seller saying a solicitor holds enough sale money to pay your invoice, while the buyer says release awaits completion adjustments. Keep both statements. Ask through the advised channel whether any amount is specifically allocated to your claim and what authorisation remains outstanding. Do not change the receivable to paid because someone has described the account as protected.

Keep recovery decisions tied to confirmation

If you are asked to pause recovery or release a claim, have the actual terms reviewed first. Clarify whether payment, confirmation or another event is required before any concession takes effect. Do not assume a statement that funds are held is equivalent to an unconditional payment undertaking. Continue meeting any live legal requirements on your lawyer's advice.

Record the final disposition

Keep the confirmation, payment reference and allocation once money is actually received. If the arrangement changes, ask what that means for your next step rather than relying on the original assurance. The decision is whether the claimed holding mechanism gives a reliable basis for waiting, supported by its actual terms and authorised evidence.