Verisona Law was instructed to advise on the prospects of successfully defending the claims being made by the joint liquidators based upon various breaches of the Insolvency Act 1986, particularly wrongful trading for which £993,000 was sought from our client, a former director
Following a detailed review of the company’s trading history and its finances, Verisona Law instructed an independent insolvency practitioner to provide expert advice. The combination of his opinion and the legal arguments put to the liquidators/their solicitors eventually resulted in them being persuaded to accept that it was most unlikely that they would be able to prove that the directors’ delay in calling a meeting of creditors had worsened the company’s financial position. Consequently the liquidators agreed to withdraw their claim on payment of a nominal sum.
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Exploring how best to secure payment of the Court award
The Defendant was the sole owner of his property and we discovered there was one mortgage registered against it. Mortgage enquiries and a valuation showed there was over £300,000 of equity in the property.
Taking Court action to settle the debt
First we obtained a Final Charging Order. This means that the Judgment debt is registered and secured against the property as an equitable charge.
We then applied to the Court for an Order for Sale whereby the property would be sold and the proceeds of sale, following the discharge of the mortgage and other costs, would be used to settle the client’s claim.
Although the Defendant strenuously opposed the application, the Court granted an Order for Sale and ordered the Defendant to vacate the property. They refused to leave.
Full repayment of the debt
At this point the Bailiff was instructed to take possession of the property and the Defendant was evicted. It was then sold and we recovered full settlement of the debt and payment of legal costs for our client.
The balance of the proceeds of sale was paid to the Defendant.
Orders for Sale are granted at the discretion of the Court and the Court may be unwilling to make an Order for Sale if there are young children, elderly or disabled occupiers living in the property.
A building company