First encounter with the recession
In the last week I’ve encountered my first real taste of the recession. One of my clients went into receivership and liquidation last Friday owing me $18,000 and it’s unlikely that I’ll be getting anything once they’ve liquidated their assets and paid off their secured creditors, etc. And to make matters worse I’ve had to pay around $5000 tax on it because a large portion of it was declared as earnings in the last financial year. I can’t claim that tax back until I can prove beyond doubt that I’ll not receive the money owed to me which will take at least a year.
Still, I have my health, my family, my friends and my home. And it’s only money at the end of the day.
Tags: liquidation, ouch, recession
ouch indeed!
…but a hearty ‘amen’ to your last two sentences!
Nasty – yep we had a similar case where we supplied several cases of wine to a restaurant that has now gone under, we too hold little hope of getting paid – but the amount owed was significantly less than your loss! We made the mistake of continuing to supply them even thought they had unpaid invoices, too trusting, lesson learnt!
It seems unfair that a business can go ‘bankrupt’ then the owners move onto new jobs and have no individual responsibility to pay back the people they owe.
I hope you do manage to get something back, and am sorry you’ve had that stress, Jack
Thank you Dale and Jack and I’m sorry to hear that you’ve been stung too Jack. I made the same mistake of continuing work while invoices were outstanding.