Creditors

If a creditor finds that their client has stopped paying invoices, it may be because they are in financial distress.

If a company faces insolvency, it is likely that a client will be classed as an unsecured creditor and that a full recovery of money owed is not possible. It may take more than a year before any dividend is paid by an office-holder (if at all).

Our restructuring and insolvency experts can help creditors to taking proactive steps when faced with non-payment. This can include:

• Bringing proceedings through a debt recovery team;
• Threatening, and progressing, a creditor’s administration order application, which is (where appropriate) a faster remedy than threatening a winding up petition;
• Bringing proceedings where appropriate for a compulsory winding up order;
• Where a formal insolvency event has occurred liaising with the insolvency practitioner with a view to maximising recoveries