Bankruptcy and Insolvency Solicitors, Borehamwood, Herts WD6
Legal disputes in the field of Bankruptcy & Insolvency consists of a key areas of our law practice.
We are a firm of solicitors whose offices are based close to Borehamwood (in Finchley Central, N3 very close to the North Circular Road).
Street parking is no difficulty in the vicinity of our office (and in particular Cyprus Road opposite has no parking restrictions except between 2pm and 3 pm).
We’ve undertaken this area of legal work over many years.
We are not instructed by insolvency practitioners and accordingly no conflict of interest for clients who instruct this firm.
Bankruptcy and Insolvency Cases
We set out below typical example of the cases which we undertake
- The annulment or setting aside a bankruptcy order. We usually have a number of such applications running at any one time. We are very experienced at undertaking this type of application including where necessary working with our clients and lenders in the raising of specialist annulment finance. We have a relationship with a number of brokers who are independent of this firm but are able to introduce our clients to sources of annulment finance. This is usually bridging or short-term finance of between six and twelve months duration. The loan is secured on property with a normal requirement of at least a 65% loan to value. The interest is rolled up during the period of the loan agreement. There is normally an arrangement fee in the region of £5,000 and the interest rate under the bridge is typically in excess of 20% per annum. However, the idea is as soon as the bankruptcy order has been annulled for the loan to be refinanced at normal commercial rates or alternatively (if this was the intention) for the property to be sold by way of exit of the loan.It is far better annulling a bankruptcy order than allowing the property to be sold by a trustee in bankruptcy. The reason for this is a trustee in bankruptcy would obtain a forced sale price – usually about 70% of the price which would be secured by an owner /occupier with no time limit to conclude the sale of the property. There will be also considerable fees of the trustee and the trustee’s solicitors for repossessing and selling the property (typically in excess of £20,000-£30,000 for the trustee and in excess of £10,000-£20,000 for the trustees’ solicitors).
The net proceeds of sale will also need to be banked with the Bank of England Insolvency Services Account, which is subject to an insolvency tax (known as ad valourum duty) of approximately 15%. Accordingly allowing a trustee to sell a property will produce a financially poor result especially if there is any surplus in the bankruptcy this will be returned back to the bankrupt at the end of the administration of the estate. Annulling the bankruptcy has the advantage of enabling the bankrupted client to sell off the property and obtain a much better financial return.
Alternatively, where this is a cheaper route, we effect negotiations for our client to buy the interest of the trustee in the relevant property.
- Defence of claims by liquidator/trustee in bankruptcy.We also have a number of these cases running at any one time.
The trustees / liquidators are usually fairly tough in pursuing claims. Where necessary we secure the assistance of specialist insolvency counsel to respond to letter of claim and to defend any claim issued in the Court. We always look upon mediation and early settlement of claims with favour upon the basis that if would be possible for any such claims can be settled upon reasonable or favourable terms.
- Defending the family home following bankruptcy. This is something which we are regularly instructed to undertake.We are normally in this situation instructed by the spouse of the bankrupt but also are instructed by the bankrupt after discharge.
- We commonly provide advice to debtors in relation to their affairs and whether bankruptcy or other alternatives routes are suitable for them.
- We are regularly appointed to defend statutory demands and petitions – both winding up petitions against companies/partnerships and also bankruptcy petitions against individuals. Again, we can introduce brokers to obtain short term finance, where a property can be used as security for the loan). Once a petition has been issued obtaining finance can be quite difficult and specialist finance would normally only be available. Indeed for a company once the petition has been advertised the bank account of the company will become frozen.
- Debt collection – via insolvency process. We have experience in relation to this. The insolvency route is only suitable where the debts are undisputed. If there is a genuine dispute, then we would use our litigation experience to send off a pre action protocol letter of claim and take a view depending upon the contents of the response. If necessary proceedings will be issued in the county court with an application for summary judgement – upon the grounds that there is no arguable defence – to only then be followed by insolvency process.
- The defence of Insolvency based prosecutions.
Contacting our firm
We are a very approachable firm.
Please call to discuss your matter and arrange an initial fixed fee meeting.
To contact us please telephone 02084466223 or alternatively send an email to enquiries@sr-law.co.uk.