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Liquidation - creditor with court award

Liquidation - creditor with court award

Postby adviceseeker » Wed Dec 17, 2014 11:01 am

In a case where a former employee of a Company has been awarded by an Employment Tribunal a sum for unfair dismissal and that award is made after the Company enters administration & is subject to liquidation does the claimant/creditor have any preferential claim as a creditor other than as an unsecured creditor? Any information would be greatly appreciated.
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Re: Liquidation - creditor with court award

Postby atticus » Wed Dec 17, 2014 11:14 am

The answer is "no". Sorry.

Official statistics show that more Tribunal awards go unpaid than are paid.
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Re: Liquidation - creditor with court award

Postby adviceseeker » Wed Dec 17, 2014 11:19 am

Thank you for your prompt reply
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Re: Liquidation - creditor with court award

Postby atticus » Wed Dec 17, 2014 1:37 pm

Just to be clear, the Insolvency Act 1986 provides that no further action may be taken against a company that goes into administration or compulsory liquidation without permission of the administrator/liquidator or the court.

This means that if you knew of the administration/liquidation, you should have notified the administrator/liquidator of your case, and the court of the administration/liquidation. In most cases, the claim would then be stayed.
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