Dealing promptly and properly with early enquiries from the Insolvency Service can make the difference between getting a potential claim dropped or it leading to full scale legal proceedings. Our expert team can help you avoid the mistakes that directors commonly make when responding to these early letters and questionnaires. Contact us today.
Insolvency service investigations – What to do
If you are approached by the Insolvency Service asking for information about the company in liquidation, you need to take great care when responding.
Initial approaches are often in the form of:
- a standard letter; or
- a more detailed questionnaire
It is vital to think about your responses carefully. Early legal advice at this stage can make a huge difference between formal disqualification proceedings being issued or the case being dropped entirely.
I was delighted by the work done by the team at FWJ and cannot recommend them highly enough. Their legal and tactical knowledge was spot on. I can now continue to grow my business free from the worry of my original disqualification.A director we defended against a disqualification claim
It is best not to ignore these enquiries
The Insolvency Service has a responsibility to make investigations into any company which enters into insolvency. Where they think further questions need answering about how the company was run and why it went into liquidation, they will commonly write to the former directors or managers of the business.
- former directors or managers don’t have to respond to these enquiries but we would recommend that they are not ignored
- if you simply bury your head and hope they go away, the chances are you will end up with more formal threats of disqualification
How you respond is crucially important
It is vitally important to consider carefully what you say in response to these enquiries.
Often, the letters or questionnaire appear very innocuous. But answering incorrectly or making inadvertent mistakes can be disastrous later on. This is because any information you give or comments you make can be later used as evidence against you in formal legal proceedings.
Often, we find, with the best of intentions, directors sometimes say things which actually harm their case.
With our expert legal advice, we can help you:
- avoid making mistakes
- ensure that you only comment where necessary
- don’t feel pressured into making responses without sight of proper documentation
- ensure you have the time you need to consider all matters fairly
Often the Insolvency Service tries to pressure or bounce directors into a hasty response which is then later used against them. We can make sure that this does not happen to you and that every opportunity is given to demonstrate there was no misconduct in the company and that formal disqualification proceedings are inappropriate.
Our specialist director services team is here to help. Seeking our expert advice at an early stage increases your prospects of successfully removing the threat of director disqualification. Speak to one of our team who will be delighted to assist you.
I was greatly impressed with the commercial, tactical and technical ability of the team at FWJ. They quickly got to grips with a complex set of facts and, through their hard work, had the proceedings against me dropped and a significant proportion of my legal fees repaid. I couldn’t recommend them highly enough.A director we defended against a disqualification claim and other claims brought by a liquidator
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