Our specialist Civil Litigation Solicitors regularly advise on insolvency-related disputes, ranging from serving and the setting aside of Statutory Demands, winding up petitions, wrongful and fraudulent trading claims, and cross-border insolvency.
From our Coventry city centre offices, we have one of the most successful and busy dispute resolution teams in Coventry, Warwickshire and across the Midlands.
Being embroiled in an insolvency-related civil dispute is extremely stressful, especially if it causes problems with your existing cashflow. What we do best is taking the matter off your shoulders and using our expertise to devise a winning strategy to settle the dispute as quickly and cost-effectively as possible.
We are a diverse, multi-lingual law firm. Our solicitors use the best-in-class technology to provide clients with streamlined, modern, and highly effective civil litigation advice and representation. Our solicitors have many years of experience which means that we have a robust reputation for excellence with the UK’s best Barristers and King’s Counsel, Forensic Accountants, Industry Experts, Insolvency Professionals, and Surveyors who can bring additional support to our Civil Litigation Department when required. Our clients also benefit from our ability to instruct the country’s most respected expert witnesses.
Our Regulatory and Corporate Crime Solicitors can also offer support to our Insolvency Disputes team and we regularly use injunctions such as freezing orders and disclosure orders to help clients obtain their objectives. Our teams work quickly and collaboratively to get you the best results in the shortest possible time.
Below are some of the most common questions we are asked about insolvency disputes.
What is a Statutory Demand?
A Statutory Demand is a written demand for payment that can be served on an individual or a business. It states that if the unpaid debt mentioned is not paid within three weeks the debtor risks having bankruptcy or winding up proceedings brought against it.
To serve a Statutory Demand on a person the debt owed must be in excess of £5,000. A company must owe more than £750 for a Statutory Demand to be served.
Statutory Demands are normally used as a tactic to encourage the Debtor to pay, and they generally work. However, the Debtor can apply to set aside the Statutory Demand if they dispute the debt. If you do proceed with bankruptcy proceeding or winding up, you risk not recovering your debt as secured creditors will be paid first. However, the Statutory Demand will alert you to the financial health of the Debtor and armed with this knowledge, we can advise you of the next best steps.
Can I challenge a CVA?
A Company Voluntary Arrangement (CVA) can be challenged in Court on the grounds of unfair prejudice or material irregularity within 28 days of the CVA’s approval by Creditors being reported to Court or, in the case of a Creditor who was not given notice of the proposed CVA meeting, within 28 days of the day on which the Creditor became aware of the meeting having taken place.
CVAs are becoming particularly important in the commercial property sphere following the Coronavirus pandemic which has resulted in many tenants owing large amounts of rents and landlords struggling to recover the debts owed. This has resulted in several CVA challenges, including the high profile case of Carraway Guildford (Nominee A) Ltd and others v Regis UK Ltd and others (2021) where the Court ruled that the CVA proposed by the tenants was for the benefit of company shareholders, finance creditors and trade suppliers at the expense of the landlords, thereby unfairly prejudicing the latter. We act for both Creditors and Debtors in CVA challenges and are quickly able to identify if unfair prejudice or material irregularity is present.
What is wrongful trading?
Many insolvency disputes emerge from allegations of wrongful trading. If the directors of a company know or ought to have concluded that there is no avoiding insolvency they have a duty to take all reasonable steps to minimise potential loss to the company’s creditors. For example, a business in such a position should not continue to order supplies it knows it cannot pay for from a supplier who will be classified as an unsecured creditor.
If the Court concludes that a director did not do everything reasonable to protect creditors, it can order the director to make such contribution to the company’s assets as it thinks proper.
Why choose us?
People choose and recommend us not just in Coventry, Nuneaton, Rugby and Leamington, but across Warwickshire, the Midlands and the whole of the UK., because we get results and in a majority of cases settle disputes outside of Court. Our Solicitors will take care of your case, ensuring you understand the options available and get the advice you need to protect your best interests.
Our Insolvency Dispute Solicitors recently acted and resolved a multi-million-pound claim under section 423 of the Insolvency Act 1986, comprising of allegations of undervaluing share transfers and property transfers to avoid paying creditors. This is just one example of our success in this complex area of dispute resolution.
To talk to us about an insolvency dispute, please contact us using the form below, call us on Coventry (02476) 231000, email firstname.lastname@example.org. or visit us at our city centre offices in Coventry.
Meet your 'Insolvency Disputes' specialists
Based in our city centre offices in Coventry, here’s our team to guide you through your legal needs.
Depending upon the complexity we are able to offer fixed fees in some cases. In other cases our solicitors charge the following hourly rate:
- Partner/Member SolicitorHourly rate of £265 + VAT
- Senior Solicitor or Head of Dept: (PQE 8yr+)Hourly rate of £240 + VAT
- Assistant Solicitor/Fee Earner (PQE 3/7yr)Hourly rate of £215 + VAT
- Newly Qualified Fee Earner (PQE 1/3yr)Hourly rate of £185 + VAT
- Paralegals/TraineesHourly rate of £135 + VAT
- Support ParalegalsHourly rate of £115 + VAT