Insolvency Practitioner Case Studies

Are you an insolvency practitioner? We have put together a selection of case studies from clients we have helped within the industry.

four pink piggy banks in a row

Overdrawn Directors Loan Account

Challenge: Our client was appointed the Liquidator of the Company and subsequent to their appointment, the Director moved overseas. A potential Directors Loan account of £18,000 needed to be confirmed and pursued.

Solution:  We reviewed the financial information and liaised with the previous accountant to confirm the existence of the Loan Account. A UK address was found but the individual had now permanently moved overseas. However, as a result, we managed to communicate via email. We also identified a further potential claim for Wrongful Trading and/or trading on Crown Monies.

Result: Following discussions with the Director, a settlement of £38,000 was achieved within 2 months of our appointment.

two professionals looking through financial paperwork

Antecedent Recoveries

Challenge: Our client was appointed the Liquidator of the Company and instructed My Debt Recovery to collect a small ledger of £20,000 across 80 accounts and to investigate the company trading prior to the Liquidation.

Solution: We reviewed the financial information from SAGE and the bank statements to identify potential claims against the directors of the company. These included preference payments to connected parties and a potential claim for wrongful trading. Following our review, the claims were pursued and an agreement reached for payment by instalments.

Result: £90,000 collected. £80,000 from the claims against the directors and £10,000 from the debtor ledger.

shop shelves stocking bottled drinks

Drinks Supplier

Challenge: Our client was appointed the Liquidator of the Company and initially, collections were managed in-house. In March 2020, 10 months after their appointment, we were asked to review the non-collectable ledger of c.40 accounts totalling £43,000.

Following our review and reconciliation, we believed further monies were collectable. The majority of the debtors were bars and restaurants who were closed as a result of COVID19.

Solution:  We attempted to engage through various communication channels with the debtors, which became more protracted than would usually have been the case. We worked with the debtors to achieve realistic payment plans.

Result: A further £24,000 collected over a period of 6 months, without the need for any court proceedings from a deemed exhausted ledger.

Insolvency Practitioner Case Studies - Printing Company

Printing Company

Challenge: Our client was appointed Liquidator of a printing company which had an outstanding debtors’ ledger of £94,000 across 113 accounts.

The top five customers accounted for £74,000 and the remaining 108 averaged just £185 per account. Volumes of accounts with small invoice values always present a challenge with a high workload for little value. Not deterred by the challenge, we set to work.  

Solution:  We focused the first few days on collecting the 5 main accounts, which after provision of multiple documents were paid in full. We then set to work on the volume accounts as the remaining £20,000 would be key in covering liquidators’ costs and a dividend to creditors. 

Result: Against a ledger of £94,000 we achieved a collect out of £93,000 and completed the case within 90 days.

Case Study -Maintenance Company

Lighting Maintenance

Challenge: Our client, the Liquidator of the Company, passed us the remaining debtor ledger 8 months after their appointment and exhausted their collections process. With incomplete records and the passage of time, we were tasked with collecting as much as possible for the benefit of the creditors.

Not deterred by the challenge, we set to work.  

Solution:  We worked methodically through the ledger and sought to establish debts that had already been collected, those that were disputed and those that needed additional information or enquiry. 

Certain debts proved tricky and where appropriate we agreed amicable settlements. Other debts were contested and where necessary we prepared these claims for legal proceedings. We dealt with several blue-chip companies and had to keep in regular contact to make sure our debt was made a priority.

Result: Against a ledger of c.£80,000, of which most debts were 12 months or more old we collected a further £35,000 of ‘uncollectable’ debt. A brilliant result which was unexpected by the client.

Case Study - Mechanical Services

Mechanical Services 

Challenge: Our client was appointed Liquidator of the Company and quickly realised most of the c.£300K ledger would be disputed, due to the failure to complete contracts and contra claims against retentions.

Our challenge was to be able to obtain the documentation required to prove the debt and contest contra claims.

Solution:  We attended the company premises before shut down and went through every case file with the director to ensure the necessary contract documentation, applications for payment and payment certificates were held and transferred to our offices. Detailed notes were made in respect of any potential issues on each job.

We worked with the various customers to agree claims and settlements reached.

Result: Initial ledger totalled £300,000 and over the next 14 months to allow for retention periods to expire, we collected a total of £135,000, exceeding the Liquidators estimate to realise.

Insolvency Practitioner Case Studies - Glazier


Challenge: Our client, the Liquidator of the Company, passed us the remaining debtor ledger 10 months after their appointment, at which point no further debts were considered collectable.

The company was a glazing supplier and installer and the ledger was a mix of domestic and commercial clients. 

Given the nature of the business, the debtors had issues with warranties and incomplete works which meant that we had to assess each debt on an individual basis, in order to maximise recoveries for the benefit of the creditors.

Solution: We collated the relevant invoices and worked methodically through the ledger. Where issues with warranties, complaints and counterclaims arose, we worked through the issue to seek an amicable resolution to each account. 

Result: Against a remaining ledger of c.£128,000 of which most debts were now a year old and subject to queries, £55,000 was collected. A recovery of 43%.

Case Study - Car Dealership & Motor Parts

Car Dealership & Motor Parts

Challenge: Our client was appointed Administrator of the Company and we were appointed the next day to collect the ledger of c.£114K across 60+ accounts. Our challenge was to pull together incomplete statement information and invoicing, along with dealing with disputes.

Solution:  Ledger information was uploaded to our systems, along with copy invoices. We produced statements for each account and issued without delay.

Result: Collections of £104K against the ledger of £114K (£5K already paid and £5K parts not delivered). We achieved a full collect out within 8 weeks of appointment.

Are you in a similar situation to our clients?

If so, get in touch to find out how we can help you.

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