Frequently Asked Questions

CreditMan can help.

Please do not hesitate to contact us and we can review the paperwork and provide you with details of what your options are and what you need to do next. 

If appropriate, using our partnership with the National Creditors Services team at Begbies Traynor, they could handle the matter going forward on your behalf. 

An insolvency practitioner (IP) is a licensed individual who is authorised to be appointed in relation to formal insolvency procedures. All IPs are regulated by a professional body.

An IP’s main obligation is to achieve the best result for the creditors in any insolvency case.

IPs have several duties, including:

• Securing and realising any assets of the company for the benefit of the creditors
• Producing reports for creditors and interested parties
• Formally closing the company, notifying creditors, employees, and any other interested parties

As a creditor you have the right to either support or nominate an insolvency practitioner. This may be supporting the proposed firm or the official receiver, or you can nominate an alternative insolvency practitioner.

There is no cost to a creditor either supporting or nominating an insolvency practitioner.

If a company is experiencing financial difficulties and prompt action to resolve this is not taken, it is very likely that a creditor will petition to wind up the company.

This is when a company is closed, staff are made redundant and assets are sold involuntarily.

A winding up order will be made after a creditor of the company petitions to the court for the winding up. The court will review the petition, make the order, and appoint the official receiver to deal with the company. The company will be immediately closed, staff removed, locks changed, and all assets seized.

As a creditor you have the right to nominate an alternative insolvency practitioner to take the place of the official receiver. 

• The process is completely involuntary, and the director(s) lose all control of the company and what happens
• The winding up order is advertised, and it is therefore public knowledge
• The official receiver or insolvency practitioner will investigate the director(s) conduct and report any evidence of wrongful trading
• If any misconduct has taken place, and is proven, the director(s) could face a directors disqualification for up to 15 years
• Any criminal wrongdoing will also be reported and can, in serious cases, result in the director(s) being prosecuted

CCJs (County Court Judgments) are issued by the court in relation to unpaid debts owing to a creditor. The creditor in question will apply to the court for the CCJ to be made and the court will then formally register the CCJ.

A CCJ is usually the next step a creditor will take if their requests for payment (phone, email, letter) go unanswered. Unacknowledged demands for payment are usually the first sign that a company is in serious trouble, and if ignored can lead to further serious legal action.

If the CCJ is not paid in full within 28 days, it will remain on the company’s (or individual’s) credit history for 6 years. If a CCJ is paid in full after 28 days it will remain on record but will be marked as being satisfied.