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Evidence for insolvency claims

For a claim dating back more than 6 years ago, what is the status of not having an invoice?

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An insolvency claim is issued against a party for recovery of monies paid from a liquidated company. Given that the claim relates to more than 6 years ago, the party only has records for around 85% of the monies, the remaining 15% appear on the relevant bank statements of the party as going out (with the name of the company being paid that relates to the liquidated companies suppliers) however no invoice is present, and those companies do not retain records past the 6 year mark.

I understand what should have been in place, my question is, is the 15% completely ignored or is a pragmatic approach taken in consideration of the circumstances, I am not asking for judgment btw, just clarity on accounting principals on how it can be seen.

Thank you.

Replies (7)

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By thomas34
08th Oct 2020 18:29

Very appropriate username for what appears to be a lack of accounting records to justify recovery of monies (activelyproactive might have avoided the problem). Any claim that has not been made within a 6 year period will fail under the statute of limitations.

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By SXGuy
08th Oct 2020 18:45

Statue of limitations is 6 years. If a claim is brought after that you'll struggle to argue why a claim was not made sooner.

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By activelyreactive
09th Oct 2020 07:48

Pre-action was 2 years ago, so assume it was within time limit because of that.

Outside of the 6 year period issue, where do the invoices stand considering the transactions do appear on the bank statements.

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Replying to activelyreactive:
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By SXGuy
09th Oct 2020 09:27

I'd say this is a legal issue not an accounting one.

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Stepurhan
By stepurhan
09th Oct 2020 10:17

The question is are the bank entries clear evidence of missing invoices or not. I suspect you will have an uphill struggle on that.

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Replying to stepurhan:
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By activelyreactive
09th Oct 2020 11:10

That's what I was thinking, can't find any direction on it, even in case law or tribunals, etc at best would assume it to be discretionary/conduct of character.

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Replying to activelyreactive:
Stepurhan
By stepurhan
09th Oct 2020 11:27

Let me put that another way.

Why do you think they constitute evidence of the missing invoices?

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