Retail closures causing thousands of job losses - don't wait to chase debts!

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11 June, 2020

Over 3,600 UK jobs have been claimed by the coronavirus pandemic, the Restaurant Group, which owns Frankie and Benny's, Monsoon Accessorize and Quiz have recently announced major restructures.

Additionally, popular business names such as Debenhams, Rolls-Royce, British Airways and EasyJet have also joined in announcing extensive cuts.

Unfortunately for creditors, once a company enters administration, the likelihood of recovery often decreases significantly.

Minimising your chances of being caught by a bad debt, and a debtor entering into administration, is done by pro-active credit control and ensuring that debts are pursued with appropriate vigour and attention.

We understand that chasing debts can often fall down the 'to-do' list when businesses are extremely busy, or trying to navigate their way through a world-wide pandemic, and therefore it may be worthwhile instructing a solicitor's firm to help. Forbes Collect can act as an extension of your usual credit control process and run your claim from start to finish. We ensure that debtors are continuously pursued, minimising the chances of an 'unpaid debt' turning into a 'bad debt' which then ultimately becomes unrecoverable.

What should I do if a debtor has entered into administration?

Firstly, you need to ensure that the administrators are aware of your debt as soon as possible - details of the administrators will be published on Companies House.

You will then need to fill out a 'Proof of Debt' form, which will ensure that you are included in the list of creditors and therefore able to vote on proposals made by the administrators. Some creditors, such as secured creditors, will take preference in this process and unsecured creditors will receive a proportion of any monies or assets remaining, if any, on a pro-rata basis.

It is therefore imperative that debts are chased as soon as possible in order to avoid such circumstances. Please do not hesitate to contact us on 0333 207 1130 if you have any questions regarding the above, or would like to know more about our services and how we can help you.

For more information contact Sadie Butler in our Forbes Collect department via email or phone on 0333 207 9388. Alternatively send any question through to Forbes Solicitors via our online Contact Form.

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