After the voluntary bankruptcy of a substantial debtor to a major international industrial supplier client, ORJ’s insolvency specialist, Mike Smyth, successfully acted on behalf of the appointed Trustee in Bankruptcy. He worked on behalf the Trustee to secure payment from the bankrupt’s brother and his connected company.
When the bankrupt concluded the sale of his house, rather than paying the proceeds to his unconnected and unsecured creditors, he instructed his solicitor to pay the funds to his brother’s company. With the benefit of direct assistance from ORJ, the Official Receiver and appointed insolvency practitioner completed an antecedent transaction investigation into the transfer from the bankrupt’s solicitor to his brother’s company.
ORJ agreed to pursue the claim under a Conditional Fee Agreement and obtained After the Event insurance cover on behalf of the Trustee; allowing the application to proceed despite the lack of funds within the bankruptcy estate. ORJ issued the claim within the Chancery Division of the Birmingham High Court.
Following an unsuccessful mediation, a CPR Part 36 offer was eventually received by the Trustee (only two months from trial) and accepted. Legal costs will be paid by the Respondents, allowing the settlement sum to be transferred directly into the bankruptcy estate.
ORJ specialises in bringing meritorious claims (even where the Claimant has insufficient funds to cover the potential costs of litigation) and we have a proven track record acting under CFA’s and in conjunction with ATE insurance.
Good claims (just like real property and book debts) are valuable assets within any insolvency (liquidation, administration or voluntary bankruptcy) and Insolvency Practitioners committed to realising this value should contact Mike Smyth at ORJ. Alternatively you can call us on: 01785 223440
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