In this particular case, we were appointed as a Trustee in a Sequestration case.
This was following the presentation of a petition to the court by a creditor who was owed over £28,000.
On appointment, our team ascertained that the debtor did not own any asset and was not in a position to make a contribution towards his sequestration. It seemed that there would not be any potential recoveries for creditors.
After meeting with the debtor and obtaining a full list of his liabilities it was ascertained that he had a number of creditors which were high street lenders.
At that time, we were working with an agent who was able to investigate claims for potential mis-sold payment protection insurance. They conducted an investigation and were able to make a claim for mis-sold Payment Protection Insurance. The claim was sufficient to pay the expenses of the Sequestration and a dividend back to creditors.
The petitioning creditor received repayment of their legal fees for petitioning the court as well as dividend.