A selection of recent Case Studies to show how we have helped others in your position.

Case Study 1: Liquidator increased debt amount after liquidation

Our client’s debt, supposedly, doubled from £60,000 to £120,000 once the Liquidator had taken control of their former company. The Liquidator had no interest in properly reconciling the amount due. All of our client’s requests for help were ignored. The client approached us worried that the Liquidator would follow through on their ‘threats’ to make them bankrupt.

As is all too common in corporate insolvency, the Liquidator’s priority is not the former director. We were able to do an initial assessment of the papers our client had received and then use our considerable experience to approach the Liquidator more formally and robustly.

It took some considerable effort but we were able to get the Liquidator to back down and then put them in a position that they wanted to negotiate a settlement rather than insist on our client’s bankruptcy. We also conducted a reconciliation exercise to show that the amount of the debt was actually far less than the original £60,000 and nothing like the Liquidator’s demands for £120,000.

When we presented all of this information to the Liquidator, we were able to get them to confront the reality of the situation and then take into consideration our fees which had been caused by the Liquidator’s intransigence. Three months after appointment, we agreed a settlement which, including our fees, was £24,900.

Case Study 2: We get £25,000 Directors Loan written-off

Our client approached us as they had received a demand of £25,000 around 8 months after the liquidation started. When the process started they were told they would have no liability whatsoever.

Using our forensic approach, we were able to obtain and then investigate substantial accounting records but the Liquidator fought every step of the way against releasing documentation. Each tranche released showed more issues with the Liquidator’s claims.

After 9 months of correspondence, we were able to show the Liquidator that there was little chance of any recovery and they agreed to write-off the balance and close the liquidation.

Case Study 3: Directors Loan & Preference – Claims withdrawn by Liquidator

Our client came to us having placed his company into liquidation and being told he would not be liable for any debts. Quickly after the liquidation started, the liquidator said he owed £40,000 as a combination of a Directors Loan and Preference Repayments.

Using our forensic approach, we were able to investigate the basis of the liquidator’s claims.

It was clear to us that our client had no case to answer and we entered into extensive correspondence with the Liquidators. 

Our efforts paid off. The Liquidators reviewed their position and agreed that they would not pursue any amounts from our client and would finalise and close the liquidation. 

In this case, liquidation should never have been advised and it was clearly in the Liquidators’ best interests to liquidate the company and not the other stakeholders.

Why do Insolvency Claims succeed where others fail?

Quite simply, we are specialists in all things insolvency and our principal has 25 years experience in both corporate insolvency and wider financial services. Very few companies operate from the perspective of what do we do now a company has failed and how do we mitigate the effects on the individual?

The liquidator will be busy representing the interests of the company's creditors which is, often, directly against your best interests. The former accountant is responsible to the liquidator for the work they have previously done for you and so, at the very least, they are conflicted and, often, need to cover their own back rather than worrying about you. Occasionally, they may have a financial interest in the liquidation – either for unpaid fees or referral fees/ commission for introducing you to the Liquidator.

We are a specialist firm that only complete work on cases that are associated with a Limited Company in Liquidation. By specialising in this way we know all of the specific circumstances, reliefs, mitigation opportunities and genuine ways to resolve the issue. We also have the benefit of hindsight and can critique others advice both (a) from a position of strength, (b) without conflict of interest and (c) based on solid experience.

How can you solve my issue?

Principally, we approach any issue as Forensic Accountants. This means that we follow the evidence. Whilst we sit between two parties, we are only appointed to act for you. This means that we are not looking for evidence that supports the case against you (and nor are we required to bring this to anyone's attention) and we concentrate on evidence that suits your position and either drives down the cost of or removes a claim against you entirely. 

How successful are you?

We successfully remove or significantly reduce a claim in 80% of the cases upon which we are appointed.

Does it affect the Liquidation?

If we are acting in relation to a personal guarantee or disqualification issue then our work has no effect on the liquidation. If we are acting in relation to a liquidator's claims against you (misfeasance, preference, directors loans etc.) then our work would reduce, or remove, the amount you have to pay which would affect the liquidators and, potentially, the creditors of the company but otherwise it would not affect the liquidation process.

How long does it take?

The quickest we have ever resolved an issue is 10 days but it usually takes around 3 to 6 months for us to complete our role because forensic work is painstaking and it will take other parties some time to acquire and provide us with the evidence requested. Once you instruct us, you will have a dedicated named contact that will guide you through the process and they will keep you up to date. Regrettably, other parties are the slowest part of our service but we work to minimise their delays and, of course, any delay usually delays you having to make any payment and so is not against your interests. Rest assured, we will work to balance delays to ensure that they are minimised. Once we have concluded a case, we stay appointed until the liquidation is complete so that you are protected from any action from the Liquidator.

What's involved?

The process for our clients is fairly simple. Once you instruct us, we do all the hard work and review your circumstances in full. You simply sign an authority for us to get the information needed directly from others and once we have the necessary evidence we will work to minimise your exposure.