Insolvency Services for Creditors

We provide, expert insolvency advice for secured and unsecured creditors of businesses and individuals.

Being owed money by a company or individual facing insolvency can be very difficult. There is a real risk you may not get back all the money you are owed. Having the right legal support can help ensure you make all of the right moves, and maximise your chances of recovering the debt.

The team at Isadore Goldman are expert legal advisors in corporate and personal insolvency, with extensive experience in acting for creditors. We understand difficult situations from all angles, enabling us to provide creditors with sensible, realistic advice on what to expect, and the best options for protecting your financial interests.

We assist and represent both secured and unsecured creditors, in corporate and personal insolvencies. We also advise on inter-creditor disputes and positions.

Our insolvency solicitors can advise creditors on issues including:

The validity of security and facility documents;
Statutory demands;
Winding-up petitions and corporate insolvency proceedings;
Bankruptcy petitions, bankruptcy and individual voluntary arrangements;
Debt recovery and enforcement options;
Working with insolvency practitioners acting as trustees in bankruptcy, liquidators, administrators, supervisors of voluntary arrangements and Law of Property Act receivers;
Seeking or challenging the appointment of an office holder; and
Suspected fraud.

Read more about how we can help in different scenarios:

Advice for secured creditors in corporate insolvencies;
Advice for unsecured creditors in corporate insolvencies;
Advice for secured creditors in personal insolvencies; and
Advice for unsecured creditors in personal insolvencies.

We know how frustrating and stressful it can be when you are a creditor of an insolvent business or individual. Our aim is to minimise any stress and uncertainty, while ensuring you recover the maximum amount possible of the debt you are owed.

Are you a creditor of an insolvent company or individual, looking for expert legal advice?

Why choose our experts for creditors’ insolvency advice?

Independently recognised expertise

Our insolvency solicitors are acknowledged experts who have achieved consistent recognition in the leading client guides, Chambers & Partners and the Legal 500.

Expertise representing creditors in a wide range of insolvency scenarios

Every insolvency is different, with its own unique challenges. With decades of combined experience, our team know exactly how to deal with even the most complex and niche issues.

Clear, realistic advice you can trust

Being a creditor of an insolvent business or individual can be very confusing and stressful. We are here to provide plain English advice on the issues you are dealing with and your options for moving forward. This includes transparent advice on the likely costs involved, including our fees.

Additional business and commercial legal services, to meet all your needs

Our sister business Isadores is a modern, boutique practice, providing full business and commercial legal services across a diverse range of business sectors.

Our corporate insolvency services for creditors

Advice for secured creditors in corporate insolvencies

Our work with secured creditors in corporate insolvencies includes:

Advising on the validity of their security and facility documents;
Advising on recovery and enforcement options and strategies to maximise recoveries, including pursuant to charges and personal guarantees;
Advising on options and strategies where fraud is suspected;
Working with insolvency practitioners to undertake options and viability reviews of distressed customers;
Advising charge holders about Law of Property Act receivership, and the appointment of receivers;
Advising charge holders about administration, and the appointment of administrators;
Assistance in dealing with liquidators, administrators, supervisors of voluntary arrangements and Law of Property Act receivers;
Advising suppliers with retention of title (‘ROT’) issues, including advice about the effectiveness of their ROT clauses and recovery of their goods from insolvent entities;
Seeking or challenging the appointment of an office holder - whether as administrator, supervisor of a voluntary arrangement or liquidator; and
Acting on court applications to protect their interests, including challenging the actions of office holders.

Advice for unsecured creditors in corporate insolvencies

Our work with unsecured creditors in corporate insolvencies includes:

Advising on and dealing with statutory demands and winding-up petitions;
Dealing with provisional liquidations and creditor driven administration applications;
Advising on recovery and enforcement options and strategies to maximise recoveries, including pursuant to personal guarantees;
Advising on options and strategies where fraud is suspected – including advising groups of creditors in relation to failed investment schemes;
Working with insolvency practitioners to undertake options and viability reviews of distressed customers;
Advising in connection with insolvency proceedings including company voluntary arrangements, liquidations, administrations, and Law of Property Act receiverships;
Assistance with lodging proofs of debt and representation at creditors meetings;
Seeking or challenging the appointment of an office holder - whether as an administrator, supervisor of a voluntary arrangement or liquidator; and
Acting on court applications to protect their interests, including challenging the actions of office holders.

Our personal insolvency services for creditors

Advice for secured creditors in personal insolvencies

We are experienced in assisting secured creditors with their recovery options where a debtor has gone bankrupt or entered into an individual voluntary arrangement.

Advice for unsecured creditors in personal insolvencies

Our work with unsecured creditors includes:

Advising on and dealing with statutory demands and bankruptcy proceedings
Acting on interim receivership applications;
Advising on recovery and enforcement options and strategies to maximise recoveries;
Advising on options and strategies where fraud is suspected.
Advising in connection with insolvency proceedings including individual voluntary arrangements, informal arrangements and bankruptcy;
Assistance with lodging proofs of debt and representation at creditors meetings;
Seeking or challenging the appointment of an office holder - whether as a trustee in bankruptcy or supervisor of a voluntary arrangement; and
Acting on court applications to protect their interests, including challenging the actions of office holders.

Common issues and options for creditors of insolvent businesses and individuals

Registering as a creditor

If you are a creditor of an insolvent company or individual, you must register as a creditor with the official receiver or insolvency practitioner. This gives you formal recognition as a creditor of the business and means you will be informed of what is happening and have the right to attend and vote within creditors’ decision procedures.

Lodging a ‘Proof of Debt’

For debts greater that £1,000, you must submit a ‘Proof of Debt’ form to the official receiver or insolvency practitioner, to prove you are owed the sum in question.

For debts under £1,000, a Proof of Debt form is not required, but you will need to provide your contact information and details of the debt owed.

Creditors’ decision procedures

Creditors may need to attend a creditors’ meeting, or take part in other types of creditors’ decision procedures, as part of insolvency proceedings. At a creditors’ meeting or virtual meeting, you will be able to ask questions about the insolvency and raise any concerns you may have.

It can be important to seek specialist legal advice before attending a creditors’ meeting, or taking part in any other creditors’ decision procedure, to ensure you know what to expect and your options for protecting your interests.

Petitioning for an individual’s bankruptcy

If you are owed money by an individual, you may be able to present a petition to court, to make them bankrupt. If your petition is successful and the person is declared bankrupt, their assets vest in their trustee in bankruptcy. Those assets will then be realised and used to repay the debts owed to you and their other creditors.

Presenting and dealing with a bankruptcy petition is complicated, and the costs can be are significant. It is, therefore, important to think carefully about this option, and ensure you have the right legal assistance if you proceed.

You must be able to prove that the individual in question owes you at least £5,000 or, if they owe you a smaller debt, that their total debts exceed £5,000. You will also need to have either served a statutory demand for the debt, or have had a court judgment for the debt, which the sheriff or bailiff has been unable to recover.

You will also need to check for any other bankruptcy petitions presented during the previous 18 months. If there are any, you will either need to register as a creditor, if a bankruptcy order has already been made, or you can support the existing petition, if it is still outstanding. You also cannot proceed with a bankruptcy petition against any individual currently protected through the ‘Breathing Space’ scheme.

If you do succeed in obtaining a bankruptcy order against an individual, there is no guarantee you will get back all the money you are owed, as this will depend on whether they have sufficient assets that can be realised and applied towards repayment of their debts, and what other debts they owe.

Individual Voluntary Arrangements (‘IVAs’)

An alternative to bankruptcy, where an individual cannot pay their debts, is for them to enter into an Individual Voluntary Arrangement (‘IVA’). This is a formal agreement between the debtor and their creditors, to pay off some or all of their debts.

IVAs are intended to allow debtors to agree with their creditors a manageable payment plan, which may involve low monthly payments, repayments over an extended period, asset sales and/or writing off some of the debt.

An IVA must be managed by a supervisor (who is an insolvency practitioner) and creditors owed at least 75% (in value) of the individual’s debt must agree to the proposed IVA, before it can be approved.

While an IVA can result in creditors receiving less that the total sums owed to them, it is often a cost-effective option, as it saves creditors the time and expense of chasing a debt that the debtor may not realistically be able to repay in full.

Consult our expert team

For clear, practical advice on taking action as a creditor of an insolvent business or individual, please speak to our expert team today.