A. The United Kingdom
6. Insolvency proceedings
6.1. General information
There are a variety of insolvency types within the UK, ranging from a voluntary arrangement - offering a fixed percentage payout to the creditors, to administration - where an administrator is appointed to try and trade out the debtor company, to liquidation - where all the debtor’s assets are liquidated. The debtor company can move between these types, and we can best advise on a case-by-case basis. If we establish that the debtor has become insolvent, we will advise you whether there is any hope of payment from the debtor. We will also register the debt with the insolvency practitioner, and, if it is judged that there will be dividends at some point in the future, we can monitor the debtor to claim the dividends when appropriate.
6.2. Required documents
- Copies of the invoices
- Copies of the orders, order confirmations, and delivery notes
- Copies of the general conditions of sale, should there be any
6.3. Expected time frame
Claims usually need to be lodged in formal insolvency within six months. The insolvency practitioner will write directly to you in the first instance. In the UK, insolvency proceedings can last up to five years.
(End of chapter 6 - Insolvency proceedings)