Work Details

Further details of the work the Insolvency Practitioner, and his/her staff, proposes to undertake.

General case administration and planning

Where a task does not fall into any of the categories referred to below but is necessary for the proper administration of the case, it constitutes general case administration.

Case planning is necessary in order to ensure the orderly and efficient winding up of the insolvent entity's estate.

Compliance with the Insolvency Act, Rules and best practice

There are certain tasks that the Insolvency Act 1986, the Insolvency Rules 1986 (as amended) and other rules and regulations, including best practice guidance, require us to undertake.

For example, there are various bodies that must be notified of our appointment, as well as the creditors, and we usually have to advertise the fact that we have been appointed. We must keep proper accounts so that we can report to creditors on the monies that we receive and what we pay out. We are obliged to report to creditors periodically and to prepare a final report at the conclusion of our administration of the case. In addition, we must have a bond in place to protect against estate funds being misappropriated.

Statutory requirements in the various insolvency procedures are slightly different and so the above provides an indication of the tasks that make up this area of work.

Investigations

In administration and creditors’ voluntary liquidation cases we are required to report to the Secretary of State on the conduct of the directors. This means that we are obliged to carry out investigations into how the directors operated the company prior to the insolvency.

In all insolvency procedures we undertake investigations to determine whether there are claims that can be pursued in relation to transactions which have had the effect of diminishing the entity’s assets. We also consider other claims that the company or debtor might have which, if pursued, would result in a recovery for the estate.

Realisation of assets

This includes all work associated with the sale or other disposal of the assets of the insolvent entity. It also includes the recovery of any debts owed to the company or the debtor, dealing with any parties that claim that they have retained ownership of goods supplied to the company or debtor and dealing with claims that assets in the company's or debtor's possession are not owned by the company or the debtor.

Trading

This category applies where the business of the company or the debtor is to be carried on during the insolvency. This usually happens where we think that more value will be obtained by selling the business as a going concern or that the completion of work, orders or other business carried on by the insolvent entity will lead to a better recovery for the estate.  

All creditors' claims (including employees), correspondence and distributions

Dealing with creditors' claims and correspondence can be very time intensive especially where there are a large number of creditors and/or employees. Where there are sufficient funds realised to make a distribution to creditors, before we are able to do so, it is necessary to formally adjudicate on claims to determine the level at which they are to be admitted in the insolvency.

Other matters, which includes meetings, tax, litigation, pensions and travel

There are certain other matters which we have to deal with which do not fall into any of the other categories mentioned above:

• Meetings include all creditors’ meetings and, where applicable, members’ meetings and other meetings such as those required as part of the investigation process
• In some insolvency procedures we are required to submit tax returns and deal with tax calculations and issues
• As mentioned above, our investigations may uncover claims that should be brought against various parties. Any time related to such proceedings will appear here
• Where the insolvent entity had a pension scheme, it is likely that this will need to be considered and dealt with
• There is inevitably some travel time associated with all cases and that will incur costs.

Version 1: August 2015