Understand the insolvency process and protect yourself from recovery scams.

Blog Insolvency

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We have been made aware by the Insolvency Service of several recovery scam companies who falsely claim that they can retrieve invested capital from the liquidation process.  These scam companies claim to be acting on behalf of the Insolvency Service.

The Liquidation Process
When a company enters liquidation, the whole process is carried out by an Insolvency practitioner who holds a specific insolvency license to carry out insolvency work.  The Insolvency Practitioner will be listed on the Insolvency Service register which can be found by going to https://www.gov.uk/government/organisations/insolvency-service

The Insolvency practitioner will act as Liquidator and sell the insolvent company’s assets in order to settle all debts.  All parties that are owed money will be informed of the liquidation, who must reply to claim and confirm the money owed.  Once the liquidation process is resolved, the liquidator will distribute available funds to those creditors where claims have been agreed.

There are no other ways for an insolvent company’s assets to be recovered and sold, so take care if you are ever contacted by anyone offering this service to you.  If you are unsure you should contact the Financial Conduct Authority’s Consumer Helpline  on  0800 111 6768.