Where does the money go?!
Normally when a debt collector receives funds from debtors
it's a fairly straightforward process: pay those funds, less
commission, to the client you're collecting funds for. However,
we found the opposite position as liquidators of a 'late-stage
recoveries' collection firm. And it culminated in us having to
ask the question: what happens when clients don't want their
money?
The Australian Taxation Office wound up this company for its
$160,000 tax debt. Aside from other unsecured creditors being owed
$475,000, the business itself was profitable with a range of
notable clients, including several large telecommunications
companies, banks, and credit card companies. The business earnt
high commission rates due to the age of the debts it collected and
at its peak, employed over 100 people. However, the business
partners fell into dispute, which impeded effective management and
for 12 months prior to liquidation, one director elected
