We understand that the Insolvency process can be complex particularly for creditors as the communication and forms can be confusing. We aim to simplify the process and help you understand what you might expect.
We have compiled a list of quick responses to help answer some of your questions. We have also included more detailed guidance below.
We advise claiming in all cases, this avoids creditors being excluded if asset realisations exceed expectations. It should be a simple process and you can withdraw if you feel burdened by it.
You should complete a Proof of Debt form and return it to the Insolvency Practitioner's office. If a dividend is payable they will write to you prior to reviewing your claim and may seek supporting documentation or clarification. You only need to claim once, and should only submit a second form if your claim changes.
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The form provided can vary slightly from firm to firm, where possible complete the form provided by the appointed practitioner, however your claim cannot be rejected if you use a slightly different form.
If your claim changes you should submit a revised proof of debt confirming the revised claim and providing the reason for the change.
The Insolvency Practitioner should advise why they have rejected your claim. If you disagree with a decision you should contact the Insolvency Practitioner's office immediately and provide any evidence to support your assertion. If you are not happy with their response you should seek legal advice. Note, challenge to an Insolvency Practitioner's decision should be lodged with Court within 28 days of receipt, however in most cases a resolution will be found.
You only need to submit your claim once, if you're unsure if it has been received ask for confirmation. You do not have to resubmit unless your claim has changed.
The Insolvency Practitioner must write to all creditors and will request claims from those that haven't submitted. This can cause confusion if you already have claimed. At RFA we aim to confirm information received for each creditor, however on occasion will need to use a standard letter for all creditors.
You should include the claim on your proof of debt, however it's important to also contact the Insolvency Practitioners office directly to make this claim. The sooner they become aware of an ROT claim the greater the chance you have of it returning value.
Insolvency processes vary in length and the duration is very much dependent on the complexity of the case and the time needed to realise value. Any reports should outline dividend prospects and indicate timescales for payment.
The information contained within these guides has been prepared based on our knowledge and understanding at the date published. Nothing on this site constitutes advice and should not be relied on as such. Rachel Fowler Advisory Limited offers no warranty or liability whatsoever to any party in respect of the content.