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Client avoids 5-year director disqualification for allegedly trading whilst insolvent.

“I cannot express how grateful I am to have had the support and expertise of Neil Davies & Partners in my recent director disqualification appeal case.”

Trading whilst insolvent is a serious offence in insolvency law as so doing is normally to the detriment of creditors who lose out significantly if liquidation is the result. Under these circumstances, a director disqualification investigation by the Insolvency Service (‘IS’) is likely. However, as this testimonial shows, it is possible to rebut the IS’s allegations and persuade them to abandon their investigation, as in this case.

Our response was swift and detailed.

Our client was alleged to have been the sole director of a company that was trading whilst insolvent for a period of over 4 years, and as such continuing to trade was to the detriment of creditors whose liabilities increased by nearly £200k during the alleged period, and were owed over £200k at point of liquidation.

On the face of it, such facts looked very bad for the client involved, and the Secretary of State for Business and Trade, through the Insolvency Service, was seeking a director disqualification period of 5 years.

Each case centres on its facts, and our initial task is always to thoroughly investigate the details of a case. We need to understand about the company, its past, what caused its problems and why. This involves talking to the directors, checking bank statements and transactions and also relevant minutes and emails so that we get a thorough and complete picture. In this way, we come to know the company, which is not something the IS do.

The end result of all this work in this case was a detailed letter of representation sent to the IS, which rebutted, with supporting evidence, each of the IS’s allegations. The IS requested additional evidence, and 2 months after our initial letter was sent, the IS notified us they were abandoning their investigation.

Our client commented.

“I cannot express how grateful I am to have had the support and expertise of Neil Davies & Partners in my recent director disqualification appeal case. From the initial consultation, I was impressed by their attention to detail and ability to explain complex legal concepts in a way that was easy to understand.

Throughout the entire process, Neil Davies & Partners provided me with clear and concise guidance on what steps I needed to take to strengthen my case. They were always available to answer any questions I had, and their timely responses gave me peace of mind during a very stressful time.

Thanks to their diligence and hard work, the Insolvency Service abandoned their investigation, and I was able to avoid disqualification as a director. I cannot recommend Neil Davies & Partners highly enough for anyone who finds themselves in a similar situation. Their expertise, professionalism, and dedication to their clients are truly exceptional.”

Talk to us if threatened with a Director Disqualification Investigation

Receiving a letter from the Insolvency Service, detailing their intention to investigate a director, with a view to director disqualification is stressful, but the outcome, as this testimonial shows, is not a foregone conclusion. Our expert team of director disqualification solicitors have a strong track record of convincing the IS to abandon their investigations – take a look at some of our other testimonials.

Contact us or call us on 0121 200 7040 for a free of charge initial discussion which will help us decide if you have a convincing case.

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