Antecedant Transaction Solicitors
Representing Creditors and Trustees in Bankruptcy
Before entering liquidation or bankruptcy, a company or individual may seek to put assets beyond the reach of creditors. This may be done in a number of ways, ranging from crude transactions to more subtle or calculated approaches. The most basic example is where a debtor transfers property to a spouse or other family member prior to bankruptcy. However, there may be less obvious transactions to be investigated, especially with the insolvency of a company or business. For example, the debtor may have made preferential payments to some creditors at the expense of others. Alternatively, the debtor may have transferred assets at undervalue. These may include parts of a business, its trading name, contracts or physical property.
These are all examples of "antecedent transactions." These transactions can be "set aside," which means that a trustee in bankruptcy or a liquidator can recover the assets for the benefit of all creditors.
Rollingsons Solicitors represents creditors and insolvency practitioners in matters ranging from individual bankruptcy to complex liquidations and administrations. We specialise in setting aside antecedent transactions and recovering the assets involved.
If you suspect that a debtor has tried to put assets out of reach prior to insolvency, call our London antecedent transactions solicitors on 020 7611 4848 or contact our law offices online.
Our Approach to Setting Aside Antecedent Transactions
Every insolvency is different and our solicitors adapt to the needs of each client. If the amount involved is not substantial, it may not be prudent to pursue court action. It may be better to negotiate with the beneficiary of the transaction for voluntary repayment in part or full. If the property involved has significant value, litigation may be the best course of action. Our team will advise you of all your options and the benefits and drawbacks of each.
Types of Antecedent Recovery
In a successful set-aside, a trustee, receiver or administrator may have certain types of transactions undone or restricted, including:
- Dispositions of property by the debtor;
- Undervalued transactions (for example, the sale of equipment at a fraction of its value);
- Transactions meant to defraud creditors;
- General assignment of book debts;
- Excessive pension contributions.
There are many other categories of antecedent recovery, some more common than others. As a trustee, creditor or insolvency practitioner, it is important that you seek appropriate legal advice early on in the process. A solicitor at Rollingsons can help you examine the debtor's finances and uncover questionable activity.
Representing Debtors and Third Parties
If you are a debtor or third party that has been threatened with action to set aside a transaction we can advise you and, if required, defend proceedings on your behalf. If appropriate, we can also assist in negotiations with creditors or insolvency practitioners.
Contact a UK Insolvency Litigation Lawyer
If you would like any advice concerning antecedent transactions, please call the experienced solicitors at Rollingsons on 020 7611 4848 or contact our London law firm online. Your initial consultation is of no cost and no obligation.