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Blog

Collecting Company Debts: The Squeaky Wheel Strategy

June 26, 2024

Maximizing Debt Recovery: Why Liquidation Proceedings Matter

In the realm of debt recovery, the name of the game is getting paid. When a debtor company owes you money, it’s not just a financial hiccup; it’s a matter of survival for your business. In this blog post, we delve into the crucial subject of liquidation proceedings against debtor companies and the reasons why you should seriously consider this path. Let’s explore these reasons and why they can be game-changers in your pursuit of debt recovery.

Being the Loudest Creditor: Priority Pays Off

In the complex world of debt collection, it’s essential to understand that debtor companies often owe money to multiple creditors. You’re not alone in this, and your goal is to stand out in the crowd. Here’s why being the loudest creditor matters:

Top Priority: If you can make enough noise, you become the top priority. When debtor companies have multiple creditors knocking on their doors, they need to decide whom to pay first. By being the loudest and most assertive creditor, you increase your chances of being at the front of the line.
Visibility: When you make your claim and intentions known, it can influence the debtor company’s perception of your seriousness. They may view you as someone not to be trifled with, and that’s a reputation you want.
Prompt Payment: The louder you are, the quicker they might act to settle the debt. This can save you valuable time and resources, and it can be a significant factor in your company’s financial health.

Preventing Voluntary Liquidation: A Strategic Move

Another compelling reason to initiate liquidation proceedings is to cut off the ability of shareholders to voluntarily liquidate the company. This may seem like a nuanced point, but it can have a significant impact on the outcome. Here’s why:

Shareholder Relationships: In some cases, shareholder-appointed liquidators may have a close relationship with the company’s owners or executives. This relationship can influence their willingness to take legal action against the very people who appointed them.
Your Choice of Liquidator: By filing and serving liquidation proceedings, you have more control over the choice of the liquidator. This gives you an edge because you can select someone more inclined to work in your favour, increasing your chances of a favourable outcome.
Frustrating Voluntary Liquidation: If you are the party initiating the proceedings, you can frustrate the debtor company’s attempts to voluntarily liquidate. This puts the ball in your court and can lead to a more favourable negotiation position.

Leveraging Liquidation Proceedings

In practice, many legal experts advise clients to initiate liquidation proceedings because it provides a strategic advantage. Here’s how it typically plays out:

Gain Leverage: Filing for liquidation proceedings gives you a powerful bargaining chip. It lets the debtor company know that you’re serious about recovering your debt, and this urgency can lead to more cooperative negotiations.
Negotiation Power: With the leverage of pending liquidation, you’re in a better position to negotiate a settlement. The debtor company may be more willing to meet your terms to avoid the complications of liquidation.
The Path to Getting Paid: Ultimately, the goal is to get paid, and liquidation proceedings can significantly enhance your chances of achieving this goal.

Seek Legal Guidance

If you find yourself in a situation where a debtor company owes you money, it’s advisable to seek legal counsel. If you want to maximize your chances of debt recovery, don’t hesitate to explore this option.

Conclusion

When you’re dealing with a debtor company, consider the strategic advantages of initiating liquidation proceedings. It’s not about forcing a company into liquidation; it’s about leveraging the process to secure your rightful payment. Be the loudest creditor, and take control of the liquidation proceedings to tilt the odds in your favor. Your financial health depends on it.

Hope is not a strategy! If you are serious about collecting money owed to you, we offer a FREE 30-minute legal consultation where we can discuss the issues and the strategy to move forward.

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Author Profile

Brent Norling

Brent is the Director of Norling Law. He has a wealth of experience in the District Court, High Court, Court of Appeal and Supreme Court. Brent is passionate about negotiating favourable outcomes for his clients and able to implement this in his daily negotiations.

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Ondrej Grulich

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Going through a business liquidation was one of the most stressful and uncertain experiences we've ever faced, but Norling Law made all the difference. From the start, they were incredibly supportive, helping us understand each step and making sure we felt informed and reassured throughout the process. Their expertise was evident, and they genuinely cared about helping us make the best decisions during a tough time. We’re so grateful for their guidance and wouldn’t hesitate to recommend them to anyone in need of legal support. Thank you!

Catherine Cooke

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A long overdue acknowledgment for Brent Norling of Norling Law, who has been a steadfast ally since our introduction in 2017. From the very beginning, Brent has been more than just a lawyer—he's been a compassionate, humble, and genuinely human presence in my professional & personal journey. Brent is one of those rare individuals who truly embodies high ethics and moral integrity. He takes the time to understand not only the legal issues but also the person behind them, showing a deep commitment to well-being and the outcomes that matter most.Having been let down by the ethics of other lawyers in the past, I found in Brent someone I can trust implicitly. He reads situations with remarkable insight and always approaches them with the utmost care and consideration. As a Business Advisor, I confidently refer clients to Brent, knowing they will receive the same level of dedication and genuine concern that I have experienced.Brent Norling is a rare find—a salt-of-the-earth, genuine lawyer who is as committed to his clients as he is to the principles of honesty and integrity. An asset to have in your corner. I would highly recommend him to anyone seeking legal counsel with heart and substance. Grateful Brent.

Brendan Gray

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Just wanted to thank Holly and Wendy for all there help with negotiating a successful settlement,I found both of them very professional to deal with.

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Mahmoud Alhardan

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Great to work with and professional

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Wendy gave our company excellent clear advice on handling a dispute we were involved in. I wouldn’t hesitate to use Wendy and Norling Law for any judicial matters we may be involved in, in the future.

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Ben Arnold

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Regarding our interactions with 90 Nine Limited and Norling Law, we must express our deep disappointment and concern. Our experience with both companies has been far from satisfactory, and we feel it is necessary to share our perspective.Upon initially engaging with Norling Law, we were initially impressed by the positive online reviews and the numerous awards the firm had received. We had high hopes when we provided them with a stack of documentation for review after a short initial consultation. However, our disappointment began to grow when we did not receive a timely response and had to reach out to Brent Noalling to inquire about the status of our documents.To our surprise, we received correspondence from Brent Noalling stating that Norling Law had never interacted with our company and did not have our documentation. Despite our affirmation that the firm indeed possessed our documents, our concerns were initially dismissed. It was only after further correspondence with another staff member that Brent Noalling acknowledged that the staff member in question no longer worked for the firm and claimed to be unaware of the whereabouts of our documentation.Approximately one week later, our documentation was discovered in the archives of Norling Law. This entire ordeal should have been the first and last interaction we had with the firm. The mishandling of our documents and the dismissive response we initially received indicate a significant failure on their part. These actions are not in line with the level of professionalism and trust we expect from a law firm.Unfortunately, our dissatisfaction did not end there. Seeking debt collection services, we engaged with Nine 90 Nine Limited due to their advertising of uncompromising services and a relentless attitude towards debt recovery. However, our experience with them was equally disappointing. Over the course of nine months, all they did was draft a demand letter and showed no further effort or commitment to recovering the debt. As a result, our business suffered significant losses, and it became evident that they did not prioritize our interests or demonstrate the level of dedication they advertised.In light of these experiences, we strongly advise others to exercise caution when considering Norling Law and Nine 90 Nine Limited for their legal and debt collection needs. Based on our interactions, it is clear that these companies do not prioritize the well-being of their clients or their businesses. We urge you not to place your trust in either of these companies and to approach any claims or promises they make with skepticism. It is disheartening to witness companies that claim to be reliable and trustworthy prey on the vulnerable while advertising the opposite.We believe it is important to share our perspective to ensure that others are aware of our negative experiences. While online reviews and awards can provide some guidance, they should not be the sole basis for choosing legal representation or debt collection services. We encourage everyone to conduct thorough research, seek personal recommendations, and exercise caution when selecting professional services. Your business and legal matters deserve to be handled by trustworthy and dedicated professionals who genuinely care about your interests.Majestic Concrete Coating Limited

Joe Seebeck

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Was an interesting experience. Job got done, eventually. Need to follow up at most stages to keep the matter moving along.

Scott @SM Property

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Brent and the team are weapons. Clear communication and gameplans. Glad to have them on my team as I wouldn't want to be on the otherside of the table from them.

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Highly recommend Norling Law and Fintan. They know their stuff, instill trust and manage the unknown by patiently working with you every step of the way.

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I had the pleasure of working with Lucia Krajancic, a Solicitor at Norling Law, and I can confidently say that she provided exceptional service. Lucia was not only extremely knowledgeable in her field, but also very helpful and supportive throughout the entire process.Lucia took the time to listen to my concerns and answered all of my questions with patience and clarity. She went above and beyond to ensure that I fully understood my legal situation and provided me with valuable guidance and advice.Overall, I highly recommend Lucia and Norling Law for their excellent legal services.

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In my recent dealings with Norling Law I was fortunate to be represented by Lucia and Wendy. Their friendly and professional manner made me feel comfortable in what could sometimes be a stressful situation. Their response to my correspondence was always timely and the advice was extremely helpful. I believe that they helped to achieve the best result without causing me exta stress and financial uncertainty.

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BEST LAWYER IN NEWZEALAND ,

Albert Yoon

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Wei Jiang

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Thanks to Fintan for helping us sort out a debt owing to us. Their service is professional, efficient and effective.

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Lucia was very understanding of my situation and offered an easy to understand in depth advise. A big help in my time of need. Thank you so much Lucia

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Maryann Whyte

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Wendy is such a great mediator and advocate of her clients! Not your typical perception of lawyers!! they really care !!

Isabelle Stacey

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Norling Law really know their stuff, thank you in particular to Wendy for her help with our business.

Jackie Venter

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Absolutely oustanding understanding of the issue and fantastic honest advice. Brent, You guys rock. Got to be the best team in New Zealand. Why would you go elsewhere. Norling Law Rules.

Mr Nicholas

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Norling Law was recommended to us when we had a construction dispute. Our contract required mediation, and we approached Norling Law to advise us. This protracted dispute was taken to arbitration and was resolved with a successful determination with every point completely in our favour.We were very impressed with the service we received from Norling Law. In particular:- their communication, especially our lawyer's ability to describe complex legal concepts in layman's terms.- the quality of the research on important legal questions.- the responsiveness of their advice, even during the long Covid lockdownGiven our experience, I would recommend Norling Law to anyone wanting advice on dispute resolution.

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I had a free half an hour consultation time with Wendy. However, we had talked for nearly an hour. Wendy's very professional, patient and has given me very helpful suggestion/advice for free. I had talked other law companies before them, Norling is the best , they know my concerns. I'm very happy to use their service.

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Evan Thomas

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Very very disappointing experience.

Mates Rates

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I found Tyler to be honest and straight forward. I would not hesitate to recommend Norling Law.

Matt Keen

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We had all but given up getting back our debt owed to us by a builder.We had a court orders for him to pay back the debt but no guarantees we would be paid back.We tried all the usual, calling for payment, debt collecting agencies and really we had all but given up hope until we came across Norling Law.Jeez I wish we found them earlier. Norlings Law no-nonsense approach of client first and get the money back ASAP meant that after 18 months of tryint, in a week of working with them, they were successful.If you are in the same boat as us, do yourself a favour and go with this capable team.

Thomas Baker

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We wish to thank Brent Norling of Norling Law for the exceptionalperformance of his team,in particular ,his senior solicitor Wendy Alexander for achieving a fantastic result in a very difficult High Court action.

Grant Williams

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Thanks Brenda for your helpful intelligent and creative work with my problemI thoroughly recommend you and your team

Sarndra

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I'm absolutely delighted with the service, communication and empathy for my situation from start to end with Norling Law.From the initial free half hour consult with mediator/senior solicitor Wendy Alexander through to paying the bill, the advice has been professional, honest and most importantly - I received from them, the review on the task I had set, in a timely manner.The resulting recommendations of how to move forward in my situation have made me feel that I've been so incredibly lucky to have seen their advert on my social media (who usually says that of adverts!) after having not pleasant experiences with 4 other Law firms.I feel much weight has been taken off my shoulders for this of the action I'm having to go through.Norling Law will be my go to Solicitor's from here on in.Thank you, especially Wendy.Sarndra.

Mark A

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Truly great team @ Norling Law and they get the results you are after.Highly recommended!

Glen Maguire

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Brent and the team at Norling Law were very helpful providing expert litigation advice on a commercial dispute we had to negotiate. The team were personable, responsive and delivered a solution that was practical and equitable to both parties.

Doug

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I have recently employed the services of Norling Law Limited and have found them to be very prudent in their dealings. I recently started a business and need contracts to be reviewed which they have done in a timely manner and found that Alice was really easy to deal with understood my needs.

Tim Muhundan - BizX Limited

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The best law firm I have ever come across. They helped me with a contract dispute this week and I could not have got the outcome I got without their help. Brent, Alice and the rest of the team are awesome to work with. Highly recommended.

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Excellent advice. Lateral thinking.

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I knew I couldn't carry on with the franchise I was under. I was financially crippled, emotionally and mentally drained.I tried approaching the franchise but was met with indifference.I was told Brent Norling is the best at franchise disputes and I believe it.I now have my business back as well as my well being.Every step of the way Brent's team made sure my interests were looked after. I never had any concerns or worries. A big thanks to Luisa and XinanI recommend Brent Norling for results and peace of mind.