Where a customer / debtor of yours is in financial difficulty, we can advise you on the best methods of recovering any outstanding debt from the debtor.
We can also advise you with regards to trading with the debtor going forward and how best to secure your position given the debtor's financial position.
Where a trade debtor has entered into a formal insolvency process, we can advise you on if and how you might recover your debt from them. We can also liaise with the relevant insolvency practitioner to ensure that you are properly registered as a creditor of the debtor, to ensure that you benefit from any distribution to creditors from the insolvent estate.
In normal trading times, our In The Black debt recovery service could be useful to you and could let your customers know that you are very diligent when it comes to recovering payment for goods or services that you have supplied. Click here to see full details of our In The Black service.
Problems with a customer of yours can arise because the debtor is just slow in paying you. They can also arise if the debtor has actually become insolvent. For example -
Going into Administration
This is a procedure (which can be instigated by, amongst others, the directors of the company) whereby an Administrator is appointed to conduct the affairs of the company and takes over the management of the company. The company can be reorganised or its assets realised whilst it is under the protection of a moratorium which prohibits creditors from instigating or continuing with a legal process against the company without the consent of the Administrator or permission of the Court. The idea behind Administration is that it can act as an alternative to winding-up so that where possible the company or at least its business can be rescued.
Liquidation
Also known as winding up. Liquidation is an insolvency procedure under which the assets of a company are realised and distributed to creditors by a liquidator. Liquidation can be compulsory (instigated by a creditor) or "voluntary” (instigated by the company itself). Unlike other insolvency procedures (such as administration), liquidation always results in the dissolution of the company.
Company Voluntary Arrangement
Also known as a CVA. This procedure involves the company and its creditors reaching an agreement regarding the payment of the company's outstanding debts. The agreement is implemented and supervised by an insolvency practitioner.
Our Insolvency Team is experienced in advising businesses that face these problems. They would be delighted to speak to you regarding your situation. As we say, we are always there for businesses who are in our BLUE LAW scheme, so we invite you to join BLUE LAW now. Once you have joined, we try to answer any legal enquiries that you have, free of charge. If legal work is needed, we give you a price, and you are then free to "shop around". If you wish to speak to us now, please click on "Please Contact Me Now” or call us on 0800 084 3256. We look forward to always being there for you.
