One Hour Series

What is a director’s loan account and why does it matter in insolvency? Often, it’s the only asset in a liquidation, and its repayment is the only possible source of recovery for creditors. In light too of the focus on bounce back loans and the mis-use of covid support schemes, it’s important that we understand the role of DLAs in our reporting requirements and recovery strategy.

The right to claim retention of title (ROT) sits in the contract between supplier and purchaser, but it is the insolvency of the purchaser that triggers the supplier’s right to claim. It’s unusual for suppliers of physical goods not to have ROT in their terms and conditions, so as insolvency practitioners we need to be confident in our dealings with ROT claims.

The Ethics Code underpins everything we do as an insolvency practitioner, and SIP 1 and the Code set out the framework within which we all operate. Our ethical approach should be at the forefront of our practice, both in terms of assessing and taking on a case and then throughout the life of the case itself. Take the time in this One Hour Series to reflect on the Code, its requirements and your obligations.

The insolvency practitioner’s relationship with HMRC is mutual: on appointment we share information about the tax payer and come to an agreed conclusion as to HMRC’s claim, dividend recovery and (eventually!) tax clearance. Like all relationships, it has its ups and downs, issues with communication and unrequited emails, but we get there in the end.