Insolvency: Liquidation + Bankruptcy
Shake the money tree - Insolvency can often be a fast method of recovering cash - particularly if your debtor wants to continue in business and you are concerned about a large debt!
How do you instruct Insolvency?
This can be instructed after using fast track collections or after judgement in a court action, where no payment has been made following the first stage of enforcement.
In terms of Insolvency services, we offer both Liquidation + Bankruptcy to help turbo-charge your recoveries. We focus on Separating the Can't Pays from the Won't Pays - the emphasis always on spending money only where recovery prospects are good!
Liquidations
Liquidations only apply to Limited Companies.
What do we do?
Present a Petition for the appointment of a Provisional Liquidator
How long does this take?
1 week after we receive your instructions (approx)
When should this be instructed?
- After carrying 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. This may be third party funds - usually cash injected personally by a company director or shareholder.
- 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 is serious about paying your debt then they may well respond positively.
Or
Our carefully selected team of Insolvency Practitioners keep their 'ears to the ground' and are able to evaluate your debtor's solvency at an early stage.
What happens once the petition is granted?
- If the Debtor company discharges the debt in full with funds from a third party then we will present a note to the court to have the petition dismissed.
- 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.
- 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?
£350.00 plus VAT and disbursements (typically £120.00)
The above includes our fee for the presentation of the petition, liaising with the provisional liquidator and having the petition withdrawn. In the event of the Debtor company settling with you, the disbursements are recoverable.
Bankruptcy
We can bankrupt individuals, sole traders or partnerships.
What do we do?
We prepare a bankruptcy petition and send it to the court for processing.
How long does this take?
1 to 2 weeks after we receive your instructions your Debtor should be served with the bankruptcy Petition (approx).
In what circumstances should this be instructed?
- After the Sheriff Officers have carried out a Charge your Debtor may appear to have few assets worth attachment, although still be trading.
- Your Debtor may have ceased trading altogether owing you a substantial amount. In these circumstances we are able to petition for your Debtor's bankruptcy.
Or
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. It is often the case that we will then be contacted with settlement proposals. We'll contact you immediately when this happens.
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?
- If the Debtor discharges the debt in whole or in part then we simply dismiss the bankruptcy petition.
- 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.
- If the Debtor does not settle you debt at all then we simply will have the bankruptcy award granted.
How much will it cost?
£350.00 plus VAT and disbursements (typically £175.00)
The above includes our fee for the presentation of the bankruptcy petition and either withdrawing same or having it granted. In the event of your Debtor settling in whole with you then the disbursements will be recoverable.
Instructing Bankruptcy/Liquidation
Please call us on 0141 331 2332 or email is at scowan@yuill-kyle.co.uk and we'll discuss the particulars of your situation with you and advise you as to whether either of these two options are the best course of action to recover your debt.
