Business
BUSINESS OBJECTIVES ACHIEVED
When a business that has debts becomes insolvent, it's the responsibility of the insolvency practitioner to identify and assess the company's assets, known as asset realisation, and release funds through these assets to pay the business' creditors. Sometimes assets aren't straightforward to locate or identify, but recovering funds with which to pay creditors is of huge importance to those who are owed money.
For an insolvent company with several creditors, the parties will be paid in an order that is decided by the insolvency hierarchy, with each creditor class paid in full before the next receives anything. If your business is one of those waiting in line for asset realisation and the release of funds, it can be a very frustrating and confusing time.
For administrators, receivers, liquidators and insolvency practitioners, asset realisation can also be a complex process, with many different factors to take into consideration.
Get in touch with us today to find out how we can help you with the asset realisation process, whether you are an insolvency practitioner or if you are owed money by an insolvent company.
The creditors that are owed money by an insolvent business are organised into classes, depending on the type of debt they are owed, which are put into order of priority. This priority is laid out by the Insolvency Act 1986 and is as follows:
If you want some assistance either with realising assets for an insolvent company, or are a creditor wanting to make sure that you are at the right place in the hierarchy, the team at Forbes can help. Get in touch to find out more.
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