Report comment

Please fill in the form to report an unsuitable comment. Please state which comment is of concern and why. It will be sent to our moderator for review.

Comment

@ Dominic Cooper26 February 2016 10:42 am

"...Usually in these types of "firms" the files are sold and transferred to other like-minded outfits, and surely even an Insolvency Practitioner wouldn't stoop so low as to empty the client account. "

Surely Dominic that is the crux. A Client Account is just that, an Expressed Trust (and arguably if a Liquidator uses monies that should be in the Client Account then that's breach of at the very least a Constructive Trust?

"...But maybe it's just a belt-and-braces thing, or maybe they tried for the last month to resolve it with the liquidator and the liquidator refused to co-operate. .."

That also seems to be distinctly possible, in which situation I would be inviting clients and/ or the Claims Handlers Regulatory Authority to express their interest in the monies left in all bank accounts before the other creditors, as to do otherwise could be very risky for them (the Liquidators) personally.

Your details

Cancel