Why the Client Needed our Help
Our Client and his son were both directors of two individual companies that had both taken Bounce Back Loans. We were contacted at the pre-s16 stage and understood that the Insolvency Service were investigating their conduct in the companies, together with the use of the Bounce Back Loan funds.
The Insolvency Service were claiming £45,000 from the father, and £45,000 from the son. At this initial stage, there was no information as to the length of disqualification being considered.
How we Helped
We were instructed and got up to speed with the factual and legal position on the case. Our firm engaged in substantive representations with the Insolvency Service to dispute the sums being claimed, together with the necessity for disqualification given the context at hand. Correspondence was exchanged between the parties and with respect to both companies.
After lengthy engagement in letter correspondence, the Insolvency Service issued S16 letters to both our Clients. These sought disqualifications of 8/9 years, and compensation in the amount of £14,000 for the father and £24,000 for the son. This was a marked reduction where the initial financial claims from the Insolvency Service totalled £90,000.
While the Clients ultimately were not in a position to both settle the claims and defend the disqualification proceedings to trial, our representations had significantly reduced the financial liability. The Clients were able to continue their businesses as sole traders and were placed into a better position to pay off a much reduced compensation debt.