Cash Recovery
Recover your cash with Insolvency
Insolvency can often be a fast method of recovering cash - particularly where your customer is still trading and you are concerned about that larger debt! Insolvency can be instructed at different stages either independently of court action or along with it.
How do you instruct Insolvency?
This can be instructed after using fast track collections or after judgement in a court action and no payment has been made after the first stage of enforcement. The following is brief explanation about the Insolvency services we offer and their cost.
LIQUIDATIONS (only against limited companies)
What do we do?
Present a Petition for the appointment of a Provisional Liquidator
How long does this take?
Approximately one to two weeks after we receive your instructions.
In what circumstances should this be instructed?
Quite often after the Sheriff Officers have carried out a Charge the Debtor company may appear to have no assets but may be still be trading. If a provisional liquidator is appointed he/she can investigate the Debtor company's affairs to establish if there are sufficient assets to discharge your debt
Or
If after a Charge is carried out and it appears the Debtor company is still trading but the process of attachment will take too long you may want to proceed with the appointment of a provisional liquidator. If the Debtor company are serious about paying your debt then they may well respond positively.
What happens once the petition is granted?
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If the Debtor company discharges the debt in full via funds from a third party then we will present a note to the court to have the petition dismissed.
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If the Debtor company is unable to discharge the debt but there are insufficient assets within the company to settle the liquidator's fees then we will proceed further with the liquidation. You will not be charged for this further procedure.
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If the Debtor company is unable to discharge the debt and there are insufficient assets to satisfy the liquidator's fees then we will have the petition dismissed.
How much will it cost?
Our fee for the presentation of the petition, leasing with the provisional liquidator and having the petition withdrawn is £350.00 plus VAT and disbursements (typically £120.00). In the event of the Debtor company settling with you the disbursements are recoverable. Although we are always obliged by the Court to advertise the petition in the local press we refrain from doing this as the cost can be in the region of £450.00. Whilst the cost of the advert is the Debtor company's responsibility it is possible, although not likely in our experience, that you would be held responsible for this fee.
BANKRUPTCY
What do we do?
Present a Petition to bankrupt your Debtor.
How long does this take?
Approximately one to two weeks after we receive your instructions your Debtor should be served with the bankruptcy Petition.
In what circumstances should this be instructed?
Quite often after the Sheriff Officers have carried out a Charge the Debtor may appear to have few assets worth attachment, although still trading. Alternatively, the Debtor may have ceased trading altogether owing you a substantial amount. In these circumstances we are able to petition for your Debtor's bankruptcy. The assumption is if the Debtor wishes to continue in some sort of business activity then he will settle your debt rather than being declared bankrupt. Obviously, if the Debtor has no assets to satisfy your debt, then we are still able to proceed with the bankruptcy Petition. This will not increase the costs that you will have already incurred to us for the bankruptcy action.
Bankruptcy can be instructed after using fast track collections
What is the procedure?
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If the Debtor discharges the debt in whole or in part then we simply dismiss the bankruptcy petition.
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if the Debtor settles only part of your debt and you wish to receive these monies then we have to dismiss the petition. If the balance of the debt is £1,500.00 or more we can re-raise the action at a later stage if the Debtor fails to maintain payments. However, as we will have had to re-raise the bankruptcy proceedings this will involve you in additional costs.
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If the Debtor does not settle you debt at all then we simply will have the bankruptcy award granted.
How much will it cost?
Our fee for the presentation of the bankruptcy petition and either withdrawing same or having it granted will be £350.00 plus VAT and disbursements (typically £100.00). In the event of your Debtor settling in whole with you then the disbursements will be recoverable.
| Tel: 0141 331 2332 | © Yuill + Kyle 2007 |
| Fax: 0141 332 4223 | 79 West Regent Street |
| Email: info@debtscotland.com | Glasgow G2 2AR |
