The insolvency process can be a minefield for inexperienced creditors, but we are able to apply our expertise to guide you through it with our specialist insolvency services.

Insolvency is a complicated area of law, with different procedures available for different situations with companies and individuals. The use of insolvency proceedings can be a useful recovery tool in the right hands and at the right time. Through our experienced staff we are able to give you specialist advice on all aspects of insolvency and identify when and what type of insolvency proceedings to implement on your behalf.

Through Cobbetts LLP we are able to give advice on all aspects of personal and corporate insolvency and Business Restructuring Services.  By working closely with other teams in the firm, in particular the corporate, banking and litigation teams, Cobbetts re-organisation and rescue experts provide lenders and other stakeholders, companies and directors of financially troubled businesses with cross departmental advice on how to avoid formal insolvency proceedings, wherever possible.  Cobbetts also have specialists in all areas of contentious and non-contentious insolvency, both domestic and international.

The team provides a full service range of advice arising from the problems caused by under performance.  The group regularly acts for all of the major accountancy firms in their role as business advisors or appointment takers.  Other clients include banks, asset based lenders, factors and discounters.
 
Through Cobbetts LLP's Insolvency team, we are able to work closely with both Official Receivers and trustees, ensuring matters are progressed in a timely manner and realisation of assets identified at an early stage. By working closely with both, we can ensure that debts and costs are paid post bankruptcy via the Official Receiver and Trustee.
 
We are also able to arrange attendance at Meetings of Creditors, lodging Proof of Debt and proxy forms and providing a report on the prospects of recovery following the meeting

Statutory Demand

A Statutory Demand is a demand for payment of the debt. The Statutory demand is not issued through the court, and therefore no court fees are payable. The Demand is a document that gives notice to the debtor that you intend to Petition the Court for a Bankruptcy Order upon the expiry of 21 days from the date of service of the Statutory Demand. Incasso LLP will arrange with Agents to effect service of the Statutory Demand by way of personal service or substituted service if deemed necessary.

Bankruptcy Petition

The Bankruptcy Petition is issued through the debtor’s local court, and court fees are payable. The Bankruptcy Petition is presented and issued by the court, who will endorse upon the Petition a hearing date and return to us to effect service upon the debtor. Once a Petition is issued and the court register a restriction at Land Registry in respect of the debtors property. We will arrange with agents to effect service of the Bankruptcy Petition by way of personal service or substituted service if deemed necessary. The appropriate witness statement regarding service will b lodged a court, prior t the hearing. Dependent upon the debtor’s reply, w will arrange for attendance a the hearing t obtain the appropriate order o your behalf. W will also arrange for a Certificate o Continuing Debt and List o Supporting Creditors to b lodged a the hearing. W will then report back o the order obtained and liaise with the Official Receiver a appropriate.

Compulsory Winding Up Petition

We are able to serve a letter on demand under section 122 of the Insolvency Act 1986. The Compulsory Winding Up Petition is presented to and issued by the court, who will endorse upon the Petition a hearing date and return it to us to serve upon the debtor. We will arrange with agents to effect service of the Compulsory Winding Up Petition by way of personal service or substituted service if deemed necessary. The appropriate witness statement regarding service will be lodged at court, prior to the hearing. Where applicable an advertisement will be placed in the London Gazette. Dependent on the debtor’s reply, we will arrange for attendance at the hearing to obtain the appropriate order on your behalf. We will also arrange for a Certificate of Continuing Debt and List of Supporting Creditors to be lodged at the hearing. We will then report back on the order obtained and liaise with the Official Receiver as appropriate.

In addition, specialist advice is available on the following areas:

Company Voluntary Arrangement (CVA)

A voluntary arrangement for a company is a procedure whereby an agreed plan of reorganisation takes place which may involve delayed or reduced payments of debt, capital restructuring or an orderly disposal of assets to allow for payment to creditors by way of a dividend.  The arrangement is instigated by the company in co-operation with its creditors and there is limited involvement by the Court.  The arrangement cannot prejudice the rights of secured or preferential creditors without their agreement.

However, it is used on relatively few occasions, and has often proved difficult to implement because there is no protection from creditors who don't support the CVA continuing with Enforcement action prior to approval of the CVA.  Nevertheless, in some cases a CVA can provide a cheaper, quicker and less complicated alternative solution for a company in difficulty and even if they are not as successful as envisaged may provide a better dividend than liquidation.  But be careful if you are to continue to deal with such a company.

If a CVA is proposed 14 days notice must be given to creditors of the creditors meeting.  You will receive:-

• Notice convening the meeting
• Proposals
• Nominee's comments on the Proposal (the Insolvency Practitioner)
• Proxy form to be completed in order to vote, together with a statement of the amount owing to you.  They can be taken with you or your representative to the meeting.

As soon as received, read the Proposal in conjunction with the comments.  Ask yourself:-

• does the debtor intend to trade on, if so, what return do you get by way of dividend?  Do the cash flow figures make sense?
• is there anything in the Proposal which is patently wrong?

Also examine the account.  Consider stopping credit trading and insist future deliveries be for cash only (if at all), but remember if the debtor proposes to trade on and uses you, although you risk getting caught twice if monitored carefully, future profit could recover past loss.