If you are owed money by a company or a person and they are not already in an insolvency process, we would suggest that you seek advice from a Solicitor. If you do not already have one, we can provide you with a list of local ones. They can write a formal letter or take legal action. Just remember that even though a judgment will normally mean they have to pay your costs, if they don’t have enough to pay what they owe you now they probably won’t be able to afford to pay costs as well. If they are not paying as they are being awkward, threatening to bankrupt them, or wind up their company may do the trick. Please don’t threaten what you will not do, as this may be an abuse of the court.
If an Insolvency Practitioner writes to you, the odds are that you will not receive what you are owed in full. There are, however, things you can do to make sure that you do not lose more money than you have to.
Voluntary Arrangements are offers to you as a creditor. By looking closely at the offer and at information they have already given you before they made the offer, we may be able to show the person or company that they can afford to pay you more than they thought.
Creditors Voluntary Liquidations include a meeting with a director. Sometimes directors forget to tell the Insolvency Practitioner about assets, or do not realise that they have them (such as insurance or similar). We can arrange to attend the meeting on your behalf to ask the right questions to jog their memory.
In Bankruptcy, there is also often a meeting. We can again go to that meeting, and if appointed Trustee in Bankruptcy look for assets and other ways to maximise the return to creditors.
In a Compulsory Liquidation, there is also often a meeting. We can again go to that meeting, and if appointed Liquidator look for assets and other ways to maximise the return to creditors. If not, we can still make sure the Official Receiver has a good idea of where to look.
Most meetings of creditors (apart from Voluntary Arrangements) are advertised in the London Gazette , so it is worth searching if you are worried that one of your customers is insolvent and you have not been told. This will not reduce the amount you are owed, but will make sure you have a say in what happens if they are trying to hide something – especially if you have not been told of the meeting.
We do not usually charge for attending a meeting of creditors. If we are appointed to deal with an insolvency matter, our fees are always set out clearly in advance.