Dispute resolution in insolvency

In these difficult days, scarcely anyone can move through life without being touched by insolvency, sometimes their own, sometimes that of a member of the family, sometimes that of a friend or possibly just because they were dealing with a third party who went bust.

And insolvency by its nature brings about disputes. These can range from massive commercial disputes down to matters much closer to home, like a trustee in bankruptcy trying to take your house or your possessions.

But why is insolvency an area where there are so many disputes?

Insolvency is all about too many people chasing too little money. That is the problem – someone has gone bust and now cannot pay his bills. So what little money there is falls to be divided amongst all the various claimants. For this reason everyone looks for every bit of help they can get in toppling someone else’s argument so they get to carry away the prize.

It goes further than that because in our insolvency regime, the courts play an enormous part. An insolvency practitioner can and indeed must enlist the assistance of the courts to do certain things and court proceedings equal expensive legal costs and lots of time.

Of course, the need to go to court is there to protect people as well as to enforce rights so there is no way that these procedures should just be brushed aside.

Insolvency over recent years has developed a huge amount of law in our society, some of that law being created by statute and much now by endless court cases which have set precedents. It is a mine-field where the unwary can find themselves in real difficulty if they are not careful.

Is there a better way?

Alternative dispute resolution in the form of mediation is a way of bringing disputes to an earlier close and can save a great deal of money in legal costs and further a great deal of stress especially if one of the parties is not a professional person pursuing a professional assignment.

At Adrian Leopard & Company we understand the issues facing both sides, having acted on both sides over the years. The issues are not always the same.

If you are a private individual or a company and not an insolvency practitioner read more about the issues you could be faced with.

If you are insolvency practitioner pursuing assets for an insolvent estate read about how we can assist you.