Insolvency help please.

[LMS]

We are about to appoint an IP for our company due to running out of cash. The IP
Is from Begbies Traynor, he did mention in the meeting that they would need to access our accounts on xero. Please can anybody tell me if this is the norm! and why, also has anyone had any dealings about Begbies Traynor. Many Thanks

 

[Scalloway]

I can't see how an IP can take over a company without having access to the accounting records.

 

[LMS]

I can't see how an IP can take over a company without having access to the accounting records.

We do have prepared accounts from our accountants, but I didn’t realise they would access our accounts on xero,we have never done this before and I just wanted to check on here this was the ‘norm’. What is it they will be looking for?

 

[Mr D]

Prepared accounts are a historic record and can be up to a time ending several months ago or well over a year ago.

The most recent weeks, months or even full year plus will be in the bookkeeping records such as Xero.

 

[LMS]

Ok thank you. Do you know anything about Begbies Traynor and their insolvency service?? the guy did come across as being quite nice!! Or is that all part of lulling you into a false sense of security

 

[Scalloway]

What is it they will be looking for

From the ICAEW website an IP has to:

sell the assets of the company ;
collect money due to the company;
agree creditors’ claims; and
distribute the money collected after paying costs.

They need access to the accounts to do this.

 

[UK Contractor Accountant]

What is it they will be looking for?

will be loooking at your DLA movements and illegal dividends right up to date ceased trading.

Did you get in writing the propsed deal on your DLA before appointing BT as liquidators?

At a former Accountancy Practice I used to work for we used to use BT for client referrals needing to appoint an IP. Used to get good deals on assets/prepacks and DLA write offs and payback plans.

 

[LMS]

will be loooking at your DLA movements and illegal dividends right up to date ceased trading.

Ok thank you

 

[Gavin Bates]

Hi

The liquidator has dutyto collectthe accounting records. These days that is most commonly electronic records.

Most of reason why is highlighted above but it is mainly to conduct his investigations.

The basic investigations are

1) to review the assets and do they common with historic accounts.

2) to review transactions in the last accounting period.

Begbies are the largest insolvency firm in the UK.

Regards

Gavin

 

[Noel O'Hare]

More importantly, is there personal guarantees attached to the business?

You should seek advice in regards to personal exposure

You should look at Bell & Company

Thanks

Noel

 

[Mr D]

More importantly, is there personal guarantees attached to the business?

You should seek advice in regards to personal exposure

You should look at Bell & Company

Thanks

Noel

Perhaps a little more help for people before blatantly promoting your business would come across better?

 

[LMS]

Perhaps a little more help for people before blatantly promoting your business would come across better?

Yes there is a personal Guarantee but we have PGI insurance, the insurance company have recommended them.

 

[KAC]

Perhaps a little more help for people before blatantly promoting your business would come across better?

Not sure he could give advice as he is the Marketing Manger. Shame he hasn't read the forum rules on self-promotion

 

[Lisa Thomas]

The Liquidator will need to look at the Company records (once appointed) to investigate what caused the Company's demise and whether the Directors have committed any misconduct that can be pursued.

 

[Noel O'Hare]

Yes there is a personal Guarantee but we have PGI insurance, the insurance company have recommended them.

Oh thats good,

Hope everything works out

Thanks

Noel