Can someone advise me, if a business goes into liquidation and owes an accountant money, how is the interest calculated? Say the company went into CVA the 10th September, so is the interest chargeable up to that date? Is it 8% of debt calculated daily is what I can read online? Sorry my question probably doesn't have the best terminology and its probably I very easy question, just not my field of experise!
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I'd not worry too much about the interest. Realistically can't remember a case when creditors actually got all their debt back, never mind any interest. CVACan someone advise me, if a business goes into liquidation and owes an accountant money, how is the interest calculated? Say the company went into CVA the 10th September, so is the interest chargeable up to that date? Is it 8% of debt calculated daily is what I can read online? Sorry my question probably doesn't have the best terminology and its probably I very easy question, just not my field of experise!
Has this company gone into liquidation or entered into a CVA? If they've already entered a CVA you may too late as the liquidator will have asked creditors to provide evidence and quantum of amounts outstanding within 1 month of appointment.
If they've entered a CVA you've got a fighting chance of getting some, if not all, of the debt back albeit over a period of time as agreed by the appointed liquidator and 75% of creditors.
If it's liquidation then in reality you'll get nothing, or next to nothing, unless they have some decent saleable assets that are unencumbered.
Interest runs from the due date of payment of your invoice assuming it had terms clearly stated, if not, you revert to statute. Interest ceases to be calculated typically at the date the liquidator is appointed. Interest charged is 8% + base rate and you can also charge recovery costs, which are based on the amount outstanding.
FYI CVA is a different procedure from Liquidation.
Interest on your debt, to the date of the Liquidation is based on your contractual rates. Interest post Liquidation (assuming a dividend is available) is at 8% pa.