We will do all we can to maximise enforcement options for our clients and assess if insolvency action will assist them in their debt recovery.
Winning a civil litigation case or obtaining a default judgment is often one of the easier parts of our job – the skill lies in the successful enforcement of a judgment. The Court of Appeal has sought to discourage the use of insolvency as a tool for collecting debt, but is that the right thing to do?
We aim to protect our clients’ interests and therefore maximise the chances of a successful recovery.
What do we do?
- we will carry out pre-litigation insolvency checks
- advise on when to use and not to use insolvency as a debt collecting tool
- calculate the benefit and risks (including costs consequences for our clients) of serving a Statutory Demand
- advise on the advantages (or disadvantages) of insolvency over more conventional enforcement procedures
The benefits of using insolvency as a debt collecting tool
In reality, a solvent debtor will wish to avoid an insolvency process and thus pay off the debt to remove a creditor’s ability to continue with the petition. It is this desire which we can exploit when serving a statutory demand.
Insolvency frees a debtor from overwhelming debts ensuring the assets belonging to the debtor are shared out fairly among all creditors.
Insolvency is often thought to be an expensive avenue to take, however the costs are charged over the debtor’s assets and therefore when used properly should not fall to our clients.
If you have any questions on insolvency and whether it would be bencifical in your situation, or if you require any further information please do not hesitate to call us directly on 01228 713070.
Posted: August 20th, 2014