What should you do on Day 1 of Insolvency

Question

What practical measures should a contracting party take, other than what is stated in the Contract, when the other party informs them that their firm is now insolvent?

Steve Hardy · Answer

A few quick initial action points off the top of my head Andy....other than contractual processes.....

If its a 'downstream' party secure possession of any unfixed materials for the work, especially if already certified and paid for, carefully record status of all work executed by the insolvent party, and hold any work in progress payments due pending a detailed review of the account.

If it's an 'upstream' party do almost the reverse.....recover unfixed materials and get work in progress accounts properly recorded and submitted ASAP. In terms of trying to recover any outstanding payments a range of measures can be taken. Always worth a an immediate approach to the accounts payable because although unlikely, if you are quick enough you may get in before the shutters come down. Failing that, make an early connection with whoever is representing them in insolvency.

What should you do on Day 1 of Insolvency

Insolvency

Andrew Crawford

Create your FREE Account