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Added: 24th April 2015

It has recently come to our attention that there are certain debt collection firms approaching creditors of Liquidations. 

They claim to be able to recover your debt by pursuing the directors of the company in Liquidation under Sections 213 and 214 of the Insolvency Act 1986.

Please note that only a Liquidator can pursue a director under these sections should it be proved that the director has fraudulently/wrongfully traded.   Any recoveries made would then benefit the creditors as a whole, and not one particular creditor (as certain debt collectors claim).

We have been advised that the debt collection firm at issue, is requesting a registration fee of £495 from the creditor prior to being able to start pursuing the director. 

We can see from the above, that the debt collection firm is unable to pursue directors personally under these sections. 

Be very cautious, therefore, if you are approached by any firms making promises of recovery.  


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