The Creditor Services Team at FWJ can provide you with comprehensive assistance and support when you are faced with the problem of a customer, supplier or other business contact becoming insolvent. We can also assist you if you have placed an order or paid a deposit to a business who has subsequently become insolvent without delivering your goods. We have experience of advising on all forms of both personal and corporate insolvency, and you may find that the options available to you as a creditor, or contingent creditor of a business will depend on the type of insolvency process involved. You can find further details of different insolvency procedures in our booklet What Is Insolvency?
How can FWJ help?
1. Procedural Support and Guidance Read more
We can help you understand the effect of insolvency on the rights and remedies available to you depending on the process of insolvency involved and the stage that it is in. We can also help you assess the likely outcome or return to you as a result of the insolvency by assisting you interpret documents and reports provided to you by insolvency practitioners. This may be of particular significance where a voluntary arrangement is proposed or if a business is traded in an administration.
Where necessary we can help you identify your creditor status and advise you whether you hold any security and the extent of your entitlement to vote.
2. Representation at Creditors’ Meetings Read more
We can arrange for you to be represented at creditors’ meetings, to ensure that any concerns you have about the business’ conduct prior to insolvency and the behaviour of any directors, or the way that the insolvency is being conducted by the insolvency practitioner, are properly brought to the forefront. In certain circumstances this representation can be free of charge.
We can also assist in the completion of proof of debt forms and the lodging of proxy forms.
In situations where a creditors’ committee is formed, we can be engaged to be your representative in that committee.
3. Taking back goods under Retention of Title Read more
In circumstances where you have supplied goods to a distressed business and they have not paid for them in full, we can help you assess whether you are in a position to make a retention of title claim and the likelihood of that retention of title claim being successful. We can then assist you in liaising with the insolvency practitioners involved, or any new purchaser of the assets, in either recovering the relevant goods, or ensuring you are paid for them.
We will, unfortunately, sometimes find that you are unable to make a valid retention of title claim. In those circumstances we can assist you, where necessary, to update your processes and re-word your terms and conditions in an attempt to minimise the chances of you finding yourself in the same situation again.
4. Recovering a Deposit/Getting a refund Read more
If you have paid for something, or partially paid for something and then found that your supplier has become insolvent before providing you with the necessary goods or services you may find that you are entitled to some money back.
In certain circumstances you may be able to apply to your bank or credit card provider, or a credit insurance company for a refund and we can assist you in making those claims.
Alternatively, you may find that any deposit you have paid is, or should have been, been in a segregated trust or client account and if so, we can assist you obtain a recovery in that regard.
We can also assist you in liaising with the insolvency practitioner appointed, to assess if there is any prospect of you collecting your goods, which may be of particular relevance if the insolvent business is being traded on.
5. Recovering funds from other parties Read more
You may find that even if the insolvent business is not able to pay you the sums it owes there may be other parties that you can turn to.
We can help you identify if any party has guaranteed the insolvent business’ obligations to you and then assist you in commencing the required guarantor action.
In very limited circumstances, it may also be possible to bring a claim against a director of the insolvent business directly.
6. Assistance to Employees of Insolvent Businesses Read more
The contracts of employment of employees of insolvent businesses will not necessarily terminate automatically on insolvency. The way your contract is treated will depend on the type of insolvency process used and the actions of the insolvency practitioner.
Our specialist insolvency lawyers work with our employment colleagues to ensure that employees of insolvent businesses understand their rights and entitlements to claim fully. We can also assist you with TUPE related queries where there has been a transfer of the business and assets of an insolvent company to another party on or around the time of insolvency.
7. Assistance to Landlords Read more
Details of the specialist service we provide to landlords of insolvent tenants can be found here.