Simon Burn Solicitors handle a wide variety of high profile, complex cases for directors or former directors, their partners or associates who are being pursued by Liquidators or Administrators. These claims are maybe to recover sums that were paid to the directors or their partners or associates before a company went into insolvency or for some perceived wrongdoing, often called “misfeasance”.
After a company has gone into insolvency payments that may have been made in good faith, and in all innocence, are often seen by a Liquidator or Administrator in a wholly different light. This may lead to the Administrator or Liquidator having certain legal recourse, which may not seem morally fair but is legally correct, against anyone who has received money from a company. Similarly actions of a director, which at the time took place in the normal course of business, when looked at through the lens of insolvency can result in unexpected legal claims.
The sorts of payments that can be attacked by Liquidators can include any payments made to creditors, salaries taken by directors, dividends or loans that have been paid or repaid. Quite often these transactions will have been made on the advice of professionals yet still Liquidators attempt to recover the money after their appointment. Sometimes the law creates new claims on insolvency which can take people by surprise. Also, the normal burdens of proof can be reversed and directors find themselves having to prove that they are not at fault.
The Liquidator will also try and claim legal costs and interest if making a claim. This can mean that a relatively small sized transaction can quickly become a large problem if a successful claim is made against you. This can potentially lead to bankruptcy in the worst situations.
However, the majority of claims like this can be dealt with or neutralised and appropriate action is taken quickly. We are a Legal 500 recognised firm and considered to be one of the leading solicitors in the country for defending claims by Liquidators and Administrators. We focus on handling complex and difficult claims in insolvency cases and consistently obtain outstanding results for our clients.
The legal landscape within which Liquidators and Administrators operate is very different to that of normal private individuals or companies. It is for that reason it is important to obtain proper expert advice quickly when faced with an insolvent related claim.
At Simon Burn Solicitors we will be able to assess your case quickly, identify the potential defences and advise you on your options moving forward. If a defence cannot be found then we will help you negotiate an agreed solution quickly and efficiently. We know what tactics work as we know how to use the law to your advantage. In particular, if you are trying to settle a claim then we can advise how to communicate your position and offer as effectively as possible.
We are always happy to discuss any situation on a no obligation basis and urge you to contact us as soon as you are faced with any potential claim. Anything you say in response to a claim could potentially have devastating consequences and it is therefore important to get proper advice as soon as possible.