Why the Client Needed our Help
Our clients, co-directors of an insolvent company, sought our assistance after each receiving a letter before action from solicitors on behalf of the liquidators of the company for claims in the sum of approximately £350,000 to £400,000. The claims were in relation to 1) dividends / drawings from the company 2) the directors’ loan account and 3) corporation tax / VAT liability.
How we Helped
Upon being instructed, we reviewed the claims and advised our clients of available defences to the claims. We sought relevant information and documentation from them, to support their defence, and prepared substantive correspondence challenging the liquidator’s claims. Our correspondence chipped away at the liquidators’ claims and put our clients in a better position to settle the matter based on our clients’ means.
The Outcome
Within 8 months of our clients receiving the letters before action, we successfully assisted them with settling the claims (including any potential claims against their family members) for a small fraction of the sum initially claimed and we negotiated payment to be made over a 3 month period. Our clients were satisfied with and greatly appreciative of the end result, as it brought an end to the stressful situation, without proceedings being issued. Had Court proceedings been issued, the overall cost to our clients of settling the dispute would have been much higher.
FWJ were very hands-on, getting involved from an early stage in seeking to avert an expensive set of litigation proceedings. I am more than happy to recommend their services, particularly when it comes to considering complicated issues or complex proceedings.
A client who was facing a liquidator claim
