24 Feb

Hiding Behind Insolvency

Often the individual is owed money by a large organisation that is threatened with bankruptcy or liquidation. For businesses that render business to business services in the modern economic climate, there is often little choice other than performing a service for any customer. However, companies that are in financial turmoil often withhold payments if they are going under, and do not pay their debt once bankruptcy is declared or the company is liquidated.

Often there is nothing that the creditor can do, and the directors of the liquidated business will often declare their own insolvency. Unlike sequestration, insolvency will virtually put the directors out of range regarding their repayment of debts before bankruptcy has been settled. This is why it is important that creditors acquire the assistance of a debt collection attorney with experience in the field of debt collection from those that have declared bankruptcy. Once a debtor declares bankruptcy, and the directors become insolvent, you’re going to be in the fight for the long run.

A debt collection attorney will do the necessary research as well as instruct their client on the possibility of success regarding a claim on the company as well as the directors’ estates post-bankruptcy. A debt collection attorney also has experience with regards to the compilation of a claim, and will best represent their client in court in the pursuit of payment. A payment of the full sum of the claim will not always occur, but depending on the state-claimed assets, and the estate of the directors, a sizeable portion of the claim can be repaid.

Make sure that you contact an experienced and professional debt collection attorney if you hope to claim back from a bankrupt business and a director who is protecting himself/herself through insolvency. Contact Ivan Zartz Attorneys today for any information regarding debt collection and/or insolvency.

Or find out more about our debt collection process by clicking the link.