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Can I get any money out of a company that's gone insolvent?

(7 Posts)
franch Tue 17-May-05 14:21:32

As a follow-up to this thread : got a letter this morning saying the company's gone insolvent and 'all enquiries and claims should be submitted to [name of Insolvency Practitioners].' Aaagh. Is there any point in my pursuing this?

lima Tue 17-May-05 14:38:49

I think it is unlikey that you will get any money - there is a priority order in which creditors are paid if there is any money to distribute, I think it's something like:

Insolvency Practioners
Secured creditors (banks etc who have a legal charge over assets)
Unsecured creditors

that's just my non-professional understanding of the situation.....experts please correct any errors

franch Tue 17-May-05 14:42:17

Agh - that's £132 I can ill afford to lose. Serves me right for having silly ideas about French classes for 15mo's - that's where being a bored SAHM gets you

Thanks for the info lima - will email the insolvency people anyway I suppose

lima Tue 17-May-05 14:44:02

heres some info from the insovency website:
To make a claim you should complete a proof of debt form and return it to the OR/IP. The form is sent to you along with the notice to creditors. Remember to sign the form. ORs will not normally send an acknowledgement. The rights of a creditor who holds a fixed charge on assets (such as a mortgage) to sell the asset to recover their debt are not affected by insolvency. The chargeholder is the first to get paid when the asset is sold. Any surplus will be handed over to the trustee/liquidator. When all the assets available to unsecured creditors have been realised, the trustee/liquidator will distribute the proceeds in a strict order of priority as follows:

1. The fees and charges of the liquidation/bankruptcy.
2. Preferential debts, which include wages owed in the 4 months before the date of the insolvency order and contributions to occupational pension schemes.
3. Any creditor holding a floating charge over an asset, such as a debenture.
4. All unsecured creditors.
5. In company cases, the shareholders.

Therefore, unsecured creditors will usually only be paid when the fees and charges of the insolvency procedures and the claims of secured and preferential creditors have been paid. Where a company which is being wound up has assets subject to a floating charge, part of the net proceeds from their sale will, in appropriate cases, be set aside for distribution to the unsecured creditors.

franch Tue 17-May-05 14:45:26

That's really useful lima, thanks. What website did you get it from? Can you post a link?

lima Tue 17-May-05 14:48:27

keyboard had gone on strike - back now

here

franch Tue 17-May-05 14:48:42

Thanks again

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