Insolvency Disputes
Our specialist Civil Litigation Solicitors regularly advise on insolvency-related disputes, covering areas such as serving and setting aside Statutory Demands, winding up petitions, wrongful and fraudulent trading claims, and cross-border insolvency.
Operating from our Nuneaton city centre offices, we boast one of the busiest and most successful dispute resolution teams in Nuneaton, Warwickshire, and across the Midlands.
Being involved in an insolvency-related dispute is extremely stressful, particularly when it impacts your cash flow. Our expertise lies in relieving you of this burden, using our knowledge to devise a winning strategy to resolve the dispute swiftly and cost-effectively.
We are a diverse, multi-lingual law firm. Our solicitors utilise top-tier technology to provide clients with streamlined, modern, and highly effective civil litigation advice and representation. Our extensive experience has earned us a solid reputation for excellence, with connections to the UK’s best Barristers and King’s Counsel, Forensic Accountants, Industry Experts, Insolvency Professionals, and Surveyors who can provide 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 also offer support to our Insolvency Disputes team, and we frequently use injunctions such as freezing orders and disclosure orders to help clients achieve their objectives. Our teams work collaboratively and efficiently to deliver the best results in the shortest possible time.
Common FAQs about Insolvency Disputes
What is a Statutory Demand?
A Statutory Demand is a written demand for payment served on an individual or a business. It states that if the unpaid debt is not settled within three weeks, the debtor risks facing bankruptcy or winding up proceedings.
To serve a Statutory Demand on an individual, the debt must exceed £5,000. For a company, the debt must be over £750.
Statutory Demands are typically used to prompt the debtor to pay, and they are generally effective. However, the debtor can apply to set aside the Statutory Demand if they dispute the debt. Proceeding with bankruptcy or winding up could result in not recovering the debt, as secured creditors are paid first. Nonetheless, the Statutory Demand can provide insight into the debtor’s financial health, enabling us to advise on the best course of action.
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, for a creditor who was not given notice of the proposed CVA meeting, within 28 days of becoming aware of the meeting.
CVAs have become particularly significant in the commercial property sector following the Coronavirus pandemic, with many tenants owing large amounts of rent and landlords struggling to recover debts. This has led to several CVA challenges, such as the notable case of Carraway Guildford (Nominee A) Ltd and others v Regis UK Ltd and others (2021), where the Court found that the CVA proposed by tenants unfairly prejudiced landlords. We represent both creditors and debtors in CVA challenges, quickly identifying unfair prejudice or material irregularity.
What is wrongful trading?
Many insolvency disputes arise from allegations of wrongful trading. If company directors know or should have concluded that insolvency is unavoidable, they must take all reasonable steps to minimise potential loss to the company’s creditors. For example, a business in such a position should not continue ordering supplies it knows it cannot pay for from a supplier who will be an unsecured creditor.
If the Court finds that a director failed to take reasonable steps to protect creditors, it can order the director to contribute to the company’s assets as it deems appropriate.
Why Choose Us?
Clients choose and recommend us not only in Nuneaton, Tamworth, Hinckley, Bedworth, and Leicester but across Warwickshire, the Midlands, and the entire UK because we deliver results and, in most cases, settle disputes out of Court. Our Solicitors will manage your case, ensuring you understand your options and receive the advice needed to protect your best interests.
Our Insolvency Dispute Solicitors recently resolved a multi-million-pound claim under section 423 of the Insolvency Act 1986, involving allegations of undervalued share transfers and property transfers to avoid paying creditors. This is just one example of our success in this complex area of dispute resolution.
Cocks Lloyd Solicitors provides exceptional Insolvency Disputes and Civil Litigation services to clients. People choose and recommend us not just in Nuneaton, Tamworth, Atherstone, Hinckley and Leicester, but across Warwickshire, Staffordshire, Leicestershire and the West Midlands, and the whole of the UK, because we get results.
To receive expert advice and representation regarding Insolvency Disputes and Civil Litigation, please contact us using the form below, call us on (0247) 6641642, email via the Request a Callback form on this contact page.