Creditor
CVA bubble bursts for Bury FC creditors
Creditors and fans of Bury FC learned a harsh lesson about Company Voluntary Arrangements (CVAs) last month when the team became the first to drop out of the English Football League (EFL) in 27 years. The club’s supporters, including local MP James Frith, are calling for an inquiry into the CVA arranged in July 2019…
Read MoreWhat do you know about misfeasance?
Although I&L‘s clients are mostly creditors, some of our work involves supporting, defending and representing company directors accused of misfeasance, and other wrongdoings. We advise whoever needs help. It’s not our role to determine whether someone is guilty of misfeasance, and in many instances our client has proved to be the innocent party. Misfeasance is…
Read MoreTips for collecting long-standing debts
Earlier this year, I&L received a phone call from a distressed subcontractor (subbie). They claimed that for months, West Midlands construction firm the Shaylor Group had been ignoring their requests for payment of an overdue invoice. After a brief consultation, they instructed us to recover the debt on their behalf. Although we were made to…
Read MoreStatutory Demand vs Pre-action letter
Pre-action letters and Statutory Demands (also known as Stat Ds) are useful tools for chasing longstanding and undisputed debts. But how do they differ? Firstly, the names of the participants involved. Whoever issues the Statutory Demand is an ‘applicant,’ but the sender of pre-action letter is a ‘claimant’. Likewise, the recipient of Stat D is…
Read MoreWhy pre-action or letters before action are essential
When chasing a business or person for a debt, it’s usually a good idea to send a letter before action – also known as a pre-action letter – before commencing legal proceedings. A letter before action is a formal notice requesting payment of an outstanding debt within 14 days in accordance with Part 7 of…
Read MoreHMRC’s Return to Crown Preference is Unfair
Expect more companies to go bust from April 2020, unless the government halts plans to make HM Revenue & Customs (HMRC) a secondary preferential creditor in insolvencies. These plans are consultative, but could impact creditors significantly if implemented. As a preferential creditor, HMRC could claim overdue penalties, VAT, PAYE, and national insurance contributions dating back…
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