Advice on insolvency...
07 February 2006, 10:45 PM
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Advice on insolvency...
Evening!
A company who owes me money went into Administration at the beginning of the month.
I don't really know the process or procedures which take place when this happens - all I've heard in the past is that the smaller creditors are unlikely to be paid..
I have emailed the Joint Administrators to let them know that I am owed money, but should I be doing anything else?
Are the chances of me seeing my money really zilch??
Any advice gratefully received!!!
A company who owes me money went into Administration at the beginning of the month.
I don't really know the process or procedures which take place when this happens - all I've heard in the past is that the smaller creditors are unlikely to be paid..
I have emailed the Joint Administrators to let them know that I am owed money, but should I be doing anything else?
Are the chances of me seeing my money really zilch??
Any advice gratefully received!!!
07 February 2006, 10:52 PM
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are you a major or a minor creditor...
as a major you get first cut of what they get...
as a minor forget it.... max you may get is 8p in the pound for the stuff you owe..
Mart
as a major you get first cut of what they get...
as a minor forget it.... max you may get is 8p in the pound for the stuff you owe..
Mart
07 February 2006, 10:53 PM
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Originally Posted by mart360
are you a major or a minor creditor...
as a major you get first cut of what they get...
as a minor forget it.... max you may get is 8p in the pound for the stuff you owe..
Mart
as a major you get first cut of what they get...
as a minor forget it.... max you may get is 8p in the pound for the stuff you owe..
Mart
that's gonna get me far
08 February 2006, 08:19 AM
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Originally Posted by mart360
are you a major or a minor creditor...
as a major you get first cut of what they get...
as a minor forget it.... max you may get is 8p in the pound for the stuff you owe..
Mart
as a major you get first cut of what they get...
as a minor forget it.... max you may get is 8p in the pound for the stuff you owe..
Mart
Employee claims in respect of wages and holiday pay up to a maximum of 800 per employee for wages and whatever holiday pay is outstanding in the 12 months prior to insolvency comes first due to what is called preferential status.
Next comes debenture/floating charge holders (usually the bank or other funder)
Then all the remaining "ordinary" creditors rank equally, with payments being made on a pence in the pound basis.
For example HM Revenue and Customs may be owed £100,000 and a trade supplier £10,000. If there is £10,000 to distribute, the divided equates to 10,000 divided by 100,000 + 10,000 or 9.09 p in the pound.
HMRC get 100,000 x .0909 = £9,090
Trade supplier gets 10,000 x .0909 = £910
Generally, there is little left for the ordinary creditors due to the size of the debenture/floating charge holder's debt.
08 February 2006, 08:23 AM
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Originally Posted by little-ginge
Evening!
A company who owes me money went into Administration at the beginning of the month.
I don't really know the process or procedures which take place when this happens - all I've heard in the past is that the smaller creditors are unlikely to be paid..
I have emailed the Joint Administrators to let them know that I am owed money, but should I be doing anything else?
Are the chances of me seeing my money really zilch??
Any advice gratefully received!!!
A company who owes me money went into Administration at the beginning of the month.
I don't really know the process or procedures which take place when this happens - all I've heard in the past is that the smaller creditors are unlikely to be paid..
I have emailed the Joint Administrators to let them know that I am owed money, but should I be doing anything else?
Are the chances of me seeing my money really zilch??
Any advice gratefully received!!!
You need to complete and lodge a proof of debt form (England & Wales) or a Statment of Claim form (Scotland) and submit this to the administrators with back up documentation in support of your claim.
If you are VAT registered, you can of course claim VAT bad debt relief on the VAT element of your claim.
If you need any more inf, PM me. This is what I do for a living. And yes, of course we get paid for it.
lol
08 February 2006, 08:25 AM
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The first people to get paid by the insolvency practitioners will be the staff's redundancy, then the VAT then the PAYE. After this comes the preferential creditors, and then, if there's anything left, the smaller creditors. So I wouldn't hold your breath.
If you have a claim on your goods ie. if you put a footnote on the bottom of your invoices stating that the goods remain your property till paid for in full then you may stand a chance of recovering your stock, but again this isn't as cut and dried as it seems.
Good luck, I had a couple go **** up on me last year and its a real bitch. Definitely get your name on the creditors list with the administrators though.
If you have a claim on your goods ie. if you put a footnote on the bottom of your invoices stating that the goods remain your property till paid for in full then you may stand a chance of recovering your stock, but again this isn't as cut and dried as it seems.
Good luck, I had a couple go **** up on me last year and its a real bitch. Definitely get your name on the creditors list with the administrators though.
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08 February 2006, 08:28 AM
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Originally Posted by MJW
The first people to get paid by the insolvency practitioners will be the staff's redundancy, then the VAT then the PAYE. After this comes the preferential creditors, and then, if there's anything left, the smaller creditors. So I wouldn't hold your breath.
If you have a claim on your goods ie. if you put a footnote on the bottom of your invoices stating that the goods remain your property till paid for in full then you may stand a chance of recovering your stock, but again this isn't as cut and dried as it seems.
Good luck, I had a couple go **** up on me last year and its a real bitch. Definitely get your name on the creditors list with the administrators though.
If you have a claim on your goods ie. if you put a footnote on the bottom of your invoices stating that the goods remain your property till paid for in full then you may stand a chance of recovering your stock, but again this isn't as cut and dried as it seems.
Good luck, I had a couple go **** up on me last year and its a real bitch. Definitely get your name on the creditors list with the administrators though.
08 February 2006, 08:56 AM
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Originally Posted by Diablo
Sorry Mate, that is wrong.
Employee claims in respect of wages and holiday pay up to a maximum of 800 per employee for wages and whatever holiday pay is outstanding in the 12 months prior to insolvency comes first due to what is called preferential status.
Next comes debenture/floating charge holders (usually the bank or other funder)
Then all the remaining "ordinary" creditors rank equally, with payments being made on a pence in the pound basis.
For example HM Revenue and Customs may be owed £100,000 and a trade supplier £10,000. If there is £10,000 to distribute, the divided equates to 10,000 divided by 100,000 + 10,000 or 9.09 p in the pound.
HMRC get 100,000 x .0909 = £9,090
Trade supplier gets 10,000 x .0909 = £910
Generally, there is little left for the ordinary creditors due to the size of the debenture/floating charge holder's debt.
Employee claims in respect of wages and holiday pay up to a maximum of 800 per employee for wages and whatever holiday pay is outstanding in the 12 months prior to insolvency comes first due to what is called preferential status.
Next comes debenture/floating charge holders (usually the bank or other funder)
Then all the remaining "ordinary" creditors rank equally, with payments being made on a pence in the pound basis.
For example HM Revenue and Customs may be owed £100,000 and a trade supplier £10,000. If there is £10,000 to distribute, the divided equates to 10,000 divided by 100,000 + 10,000 or 9.09 p in the pound.
HMRC get 100,000 x .0909 = £9,090
Trade supplier gets 10,000 x .0909 = £910
Generally, there is little left for the ordinary creditors due to the size of the debenture/floating charge holder's debt.
things have changes somewhat since the last time we were caught up in this
scenario
Mart
08 February 2006, 12:09 PM
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Originally Posted by Diablo
took you long enough 
LOL
LOL
08 February 2006, 06:12 PM
#13
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Thanks for all of the above,guys.
Lodged my claim with the administrators last night via email ; they have confirmed this and asked for paperwork - nice fat envelope winging it's way in the morning.
Lodged my claim with the administrators last night via email ; they have confirmed this and asked for paperwork - nice fat envelope winging it's way in the morning.
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