Changes in The Insolvency World
As of 6 April 2017, things are changing in the Insolvency world, perhaps coming more into the 21st Century. New Rules have come into law and the way Insolvency Practitioners (IP’s) are going to call meetings of creditors (or not) and interact with creditors is going to be significantly different.
How will this affect your clients? Well, IP’s will be sending more information prior to decisions being made about liquidations and administrations taking place. So if your client is owed money then a large pack of information will be landing on their desks.
After that point they may never hear from the IP again. The IP will be uploading the majority of their reports and documents to a website (now we are in the 21st Century). If there is going to be a dividend paid, written notice will be given.
One way of entering into liquidation could be letting creditors know it is happening on a certain date, and if there are no objections, then the decision is made without any further reference to creditors. This is significantly different, so it you and your client believe that a physical meeting is required, then do let the IP know as soon as possible, and then a meeting will be called. This will give you a chance to question the director on what has happened.
To discuss further, please do call us on 01202 237337 or 02871 878141.