What are my rights as a creditor in an insolvent estate?

what are my rights as a creditor

With insolvency cases continuing to rise, it is important that creditors are aware of their rights should a company enter an insolvency process, the steps that can be taken to minimise the debt to be written off and the knock-on impact on their cashflow.
Firstly, it is important that creditors know where they rank in the order of priority. If you supply goods and/or services you will effectively sit at the bottom of the pile if a distribution is made to creditors. In addition, given the bulk of any HMRC claim will be paid ahead of the general body of creditors due to their secondary preferential status, in most insolvencies, any distributable funds are extinguished, leaving little chance of a payment to the ordinary trade creditor.
To reduce the chance of suffering a bad debt as a creditor may require an assessment of your internal procedures.  As part of that assessment, PBC offer the following advice and services, both in anticipation of a customer entering into insolvency or when an insolvency event occurs, including:
1)    Retention of Title Claims:  Assisting you with making any claim or reviewing your current terms.
2)    Explaining, in simplistic terms, the no doubt bewildering specific terminology (which by law insolvency practitioners must use) in reports received and representing creditors in insolvency proceedings.
3)    Provide training to credit control so they understand the different insolvency procedures but, more importantly, can spot the warning signs. As they say “prevention is better than the cure”.
If you require any advice or assistance on any insolvency-related issue, then please contact PBC Business Recovery & Insolvency to discuss and advise on your situation on 01604 212150 or email to enquiries@pbcbusinessrecovery.co.uk.  Alternatively, visit www.pbcbusinessrecovery.co.uk for further information