Posted on 21 November 2014
It's commonly accepted that seeing the word bankruptcy, liquidation or administration proceedings on formal paperwork means that you have lost your money and should write off your debt, concentrating on chasing your good debtors. More often than not you would be probably right...however, it’s not always the case and you shouldn’t lose your right to vote and influence insolvency proceedings.
In the current difficult climate, there are more chances of individuals or companies extending credit and using the business bank account as an extension of their own. More and more, I see transactions that are not in the best interest of creditors and as such need appropriate investigation in order to recover the proceeds for the benefit of creditors. As such, I urge creditors to use their right to prove in the insolvency process to ensure that directors and individuals are duly investigated to ensure any wrong doing is correctly pursued by an appropriate Insolvency Practitioner.
Therefore if you receive notification that your debtor is entering into insolvency proceedings, then on receipt of the paperwork immediately act and contact us who will talk you through the simple completion and submission of the paperwork so your vote and voice can be heard and can really count.
It’s time that creditors truly engaged in insolvency proceedings rather than just turning their backs and letting the process take its course, too many directors and individuals are trading irresponsibly and with creditors money whilst still enjoying a nice lifestyle that the business arguably cannot afford.