As a creditor, what can I do to protect my position?
Generally, the first you hear of an insolvency is when you receive a copy of the notice from the Insolvency Practitioner.
The notices will differ depending on the insolvency procedure being used. However, there are a number of common features that should be addressed in all instances.
Proof of Debt - This document will be included with the notice that you receive and should be completed and returned to the Insolvency Practitioner as this enables the registration of your claim
Retention of Title (ROT) - Should your contract with the insolvent company be for the supply of goods and include ROT, you may be able to recover the goods sold. You should contact the Insolvency Practitioner immediately and notify him of your claim. This is a complex area of law and so it is wise, in advance of such circumstances, to take your own legal advice to ensure that your contracts do contain a valid, useful ROT condition.
Creditors Meeting / Proxy - At a point depending on the insolvency procedures, there will be a Meeting of Creditors which you will be able to attend. Should you wish to vote at the meeting but be unable to attend you should complete and submit the Proxy form that you will have received. Also, if you wish to attend the meeting representing a limited company a duly signed Proxy form will be required to be submitted in advance.
Should you have any uncertainties about these matters, you should contact the Insolvency Practioner to ensure that things are handled correctly.
Fax: 0161
438 8554