Unfair Preference Claims

Unfair preference claims arise where payments made before liquidation are examined to determine whether they unfairly preferred one party over others. Clear legal advice helps clarify whether a claim should be pursued or defended, and how to respond in a structured and informed way.

We help:

  • Understand whether a payment may be treated as an unfair preference
  • Assess exposure and available defences under insolvency law
  • Respond to claims with clarity and minimal disruption
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We Understand What You Are Going Through

Unfair preference claims can arise in different contexts. You may be a director, creditor, or related party who has received a demand from a liquidator seeking repayment of funds. Alternatively, you may be a liquidator tasked with investigating transactions and recovering payments for the benefit of creditors.

In either situation, these claims often involve complex factual and legal questions, including timeframes, documentation, and how payments were made. The process can place pressure on all parties involved, particularly where significant amounts or multiple transactions are in issue.

We understand both sides of unfair preference claims. We assist liquidators in investigating and pursuing recovery actions, and we advise directors, creditors, and related parties on responding to and defending claims. Our approach focuses on clarity, proportionality, and achieving sensible outcomes in the circumstances.

Our Services Include

  • Advising liquidators on the investigation and pursuit of unfair preference claims
  • Assessing whether payments are recoverable under the Corporations Act
  • Advising directors, creditors, and related parties on exposure and defence options
  • Supporting negotiations between liquidators and recipients of alleged preference payments
  • Preparing and responding to formal demands and proceedings
  • Representing clients in unfair preference litigation where required
Our Difference
Accountability & Expertise

Every matter we handle comes with full accountability. You’ll deal directly with an expert – every time, no exceptions.

In Your Shoes

Understanding your unique circumstances and goals - so our advice is practical, personal, and never given in a vacuum.

Transparency & Communication

We speak your language. That means plain, clear advice - what’s happening, why it matters, and what comes next.

50+
Australian Based Team
4,000+
Matters Expertly Handled
10+
Awards & Industry Recognition

Our Process

  1. Book Meeting
    Fill in contact form below or call our office to book an initial consult. You can choose between in-person or video conference.
  2. Get Advice

    You’ll discuss your situation in depth with a senior lawyer. This includes exploring your requirements, goals, and desired outcomes. You’ll walk away from this meeting with a clear understanding of the next steps.
  3. Achieve Outcomes

    Our legal team will work tirelessly to achieve your desired objectives. We work hard, communicate regularly, and pride ourselves on delivering results.
Contact
Take the First Step Today

You don’t have to figure this out alone. Book an initial consult with our expert legal team and get clear answers about your situation.

  • Transparent quotes (no ‘bill shock’)
  • Rapid response
  • Award winning team
Andrew Henshaw
Managing Director
Award Winning Law Firm – Top Specialist Firm & Top Boutique Firm (Australasian Lawyer)
Our Directors

Managing Director

Andrew Henshaw

Director

Greg Thomas

Director

Jess Hill

Director

Rajan Verma

Director

Seamus Ryan

Frequently Asked Questions
What is an unfair preference claim?
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An unfair preference claim arises where a liquidator alleges that a payment made by a company before liquidation unfairly preferred one creditor over others. The law allows certain payments to be recovered for the benefit of all creditors.
Who can be involved in an unfair preference claim?
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Unfair preference claims may involve liquidators seeking to recover payments, as well as directors, creditors, or related parties who received those payments. The rights and obligations of each party depend on the circumstances of the transactions and the applicable legal framework.
Are all payments before liquidation considered unfair preferences?
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No. Only certain payments made within specific timeframes and circumstances may be recoverable. The nature of the payment and the surrounding context are important.
Can unfair preference claims be defended?
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Yes. In some cases, statutory defences may apply, such as where payments were made in the ordinary course of business. Assessing available defences depends on the facts of each case.
Do unfair preference claims always proceed to court?
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No. Many unfair preference claims are resolved through negotiation or settlement. Litigation is usually a last resort where agreement cannot be reached.

Take the First
Step Today

You don’t have to figure this out alone. Book an initial consult with our expert legal team and get clear answers about your situation.

  • Transparent quotes (no ‘bill shock’)
  • Rapid response
  • Award winning team
Book Consult
4.9
74 Google Reviews
Award Winning Law Firm – Top Specialist Firm & Top Boutique Firm (Australasian Lawyer)