Some creditors are owed money, but the debtor (which could be an individual or a company) refuses to pay them. In many circumstances the creditor is sure that the debtor does have the money and/or other assets to be able to pay them.
If the debtor is not already in bankruptcy / liquidation, and they are owed £5,000 or more, the creditor may be able to get them formally put into bankruptcy / liquidation – and with Clarke Bell nominated as the Trustee / Liquidator.
In these legally appointed positions, we would have the full weight of the law behind us to make rigorous investigations into the affairs of the debtor – including looking for any hidden assets they may have.
A Bankrupt / director of a company in Compulsory Liquidation, has a legal duty to co-operate with their Trustee / Liquidator. They are compelled to do so by Court Order.
If they fail to do so, they are in contempt of court – which can be punishable by imprisonment.
Putting good money after bad?
We would never encourage anyone to put good money after bad.
If we don’t think it would be in your client’s best interests to pursue the matter, we will tell them.
For more details on this issue just click here.