In this technical bite we look at what a creditor needs to do if owed money by an individual or company which has entered into a formal insolvency procedure.
- The formal insolvency process can take some time to complete and whether or not you are likely to recover any amounts owed will depend on each individual case.
- You should receive information from the Insolvency Practitioner (IP) at the start of the process and at intervals throughout. It is important to provide the IP with whatever information he requests from you quickly.
- It is particularly important to ensure that details of your claim are registered with the IP and that you provide sufficient information to enable the IP to agree your claim. (Note that there are different procedures for employees).
- If it is clear that there will be no recovery for creditors the IP will not usually take steps to agree claims.
- If you have concerns over the way an insolvent business was run prior to the insolvency let the IP have details.
- Ensure that you communicate with the IP and ensure that you inform any change of contact details.
- The Association of Business Recovery Professionals (R3) has an excellent website which gives guidance to creditors on insolvency processes. This can be found by clicking here or contact one of the Ensors team for more specific advice or assistance in dealing with your claim.
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