Unsecured Creditor
How to challenge a statutory demand
Company directors, business owners, and individuals can expect to receive more statutory demands in 2022 compared to previous years. Why? Covid-19 has forced many people and companies to give more credit than usual, and making a statutory demand is the first thing they’ll do when attempting to recover overdue debts. A statutory demand is a…
Read MoreCorporate fraudsters: Are UK laws tough enough?
Whereas dishonest British company directors are rarely punished, American TV star Martha Stewart served time in jail for misleading investors Several articles discussing UK fraud laws have been knocking about over the past week, and several ask a fascinating question: Compared to the USA, is the UK tough enough on corporate wrongdoing? It’s safe to…
Read MoreBenefits of a creditors’ committee
Creditors in a statutory insolvency procedure should establish a creditors’ committee if they want to influence proceedings, set the basis for the insolvency practitioner’s fees, and increase dividends for the general body of creditors. A creditors’ committee consists of 3 to 5 people who are responsible for setting the basis of the insolvency practitioner (IP)’s…
Read MoreUnderstanding your insolvency practitioner (IP) Part 2
It’s fair to say the laws surrounding the insolvency regime were written largely by and for insolvency practitioners (IPs). The legislation governing insolvencies throughout England and Wales came into force with the passing of the Insolvency Act 1986. These laws were updated 30 years later with the enactment of the Insolvency Rules 2016. The 2016…
Read MoreTips for creditors in a company voluntary arrangement
You must respond quickly if you’ve become a creditor in an insolvency procedure such as a company voluntary arrangement (CVA). A CVA is a formal contract between an insolvent company and its creditors. The agreement allows a company to continue trading while repaying creditors, usually over 3 to 5 years. You’ll find financial information and a…
Read MoreTips for creditors in administration
Many business owners and directors will return after lockdown to discover they’ve become creditors in a statutory insolvency procedure, most likely administration. This is because administration is an attractive solution for business owners looking to avoid incurring further debts with suppliers following Covid-19. The procedure is a rescue mechanism for asset-rich but insolvent companies and…
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