One of the main stumbling blocks experienced by insolvency practitioners trying to win new work is that of securing their fees from an insolvent company. For a company with mounting debt, no money, and few, or no assets, the costs inherent in a CVL can make the process simply out of reach for these directors. However, there is another way company liquidation can be funded and that is through a successful director redundancy claim.
With the average director redundancy claim topping the £9,000 mark, this may not only allow for your fees to be met in full but also leaves some left over for the director too, meaning they are actually at a net financial advantage by opting for formal liquidation over strike off. The lure of director redundancy can turn the financial aspect of liquidation from one of your biggest hurdles to a major selling point.
Insolvency practitioners must ensure they refer their clients to a company that fully complies with Claims Management Regulator (CMR) requirements. Redundancy Claims UK are the first company specialising in director redundancy claims to be regulated and are currently the only regulated firm who can legitimately receive referrals making us the obvious choice to ensure you remain compliant of these rules.
Redundancy Claims UK can work with Insolvency Practitioners to pre-qualify claims and win business that would otherwise have been lost without a successful redundancy claim. Call our team on 01625 462 587 to refer a client or to learn more about how we can help. RCUK are Authorised and Regulated by the Financial Conduct Authority. Authorisation No 830522. You can check our registration here.
Does accepting a new job offer before the date of redundancy prevent a director making a claim for redundancy to the RPS
If you are looking to close your limited company, you may have attempted to strike it off by submitting a DS01 form to Companies House. This process is also sometimes referred to as dissolving or company dissolution.
A Creditors’ Voluntary Liquidation (CVL) is an official procedure whereby a company’s assets are liquidated in order to pay creditors. It’s typically initiated by directors when their company becomes insolvent and there is no hope of business recovery.
May I take this opportunity to thank you and your team for all your professional help in securing for myself and my wife, redundancy pay. I would have no hesitation in recommending RCUK to assist them.Tom Harrison Managing Director of a construction company