Chasing Debts from Disqualified Directors

One of the biggest obstacles to recovering an outstanding debt has always been if a company ceases trading - this is basically a dead end, as once the company ceases to exist, it's impossible to continue chasing the individuals who ran it. Or is it?

Under the terms of the Small Business, Enterprise and Employment Act 2015, which received royal assent on March 26th 2015, new rules will apply to disqualified directors, and particularly to any losses incurred by creditors due to director misconduct.

Looking at the Small Business, Enterprise and Employment Act 2015

Last week, the Small Business, Enterprise and Employment Act 2015 gained royal assent, meaning broadly speaking, the various measures that have already been outlined by BIS, the Insolvency Service and other government departments should be brought into law without any major changes.

What does this mean for creditors? Actually there are some broad sweeping measures, and some more specific ones, which should combine to tip the balance more fairly in the direction of creditors.

Pay on time? No, I've opted out...

In a frankly astounding turn of events, Debt Guard Solicitors have proposed introducing a right for big businesses to opt out of paying on time.

Read that again, because it's an almost unbelievable statement - a commercial debt recovery firm suggesting that big brands should have the opportunity to simply opt out of being punished for late payment.

'Small Business Conciliation Service' - Mediation by Any Other Name

Where do small businesses turn for help when they suffer due to late payment? Under new government plans, there could soon be a Small Business Conciliation Service tasked with tackling that precise problem.

That's not its official name as yet - and in fact, you could be forgiven for thinking you already know of a 'conciliation service' for small business disputes, in the form of mediation.

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