Outsourcing and Sequestration Transfer Assistance

August 2, 2017

When you're busy or experiencing fluctuations in staffing, it's difficult to find extra working capacity at a reasonable cost.

180 Advisory Solutions can provide your business with a flexible insolvency outsourcing and sequestration transfer service to keep your business running smoothly when you experience disruption. Find out more about our services below.

Insolvency Outsourcing

Outsourcing

We offer consultancy, partial and comprehensive administration of cases on behalf of other insolvency firms.

Sequestration Transfer

Sequestration Transfer

A cost-effective sequestration transfer service for retiring insolvency practitioners and insolvency book sales.

 

Outsourcing

Having worked in the personal insolvency industry as appointment takers for over ten years, we have extensive experience from running thousands of cases and providing robust outsourcing services to other insolvency practices.

Previously, clients have engaged us to close their cases, some to manage a portion of their portfolio and others to administer all their entire caseload from start to finish, including acting directly as those firms' insolvency practitioner taking the appointments into our own name.

Our lightweight team is exceptionally flexible, allowing us to work from the paper case file or, more usually, via limited remote access. We are happy to work with varying levels of autonomy determined by the client firm.

We are also happy to work on long- or short-term, large or small assignments, whatever our client firms need from us. Our contracts specifically and categorically state that beneficial ownership of the cases remains with our clients.

We've all heard the horror stories of certain insolvency practitioners, as soon as their name is on the ticket, they take the cases away for themselves, legally but maybe not morally justifying this action on the grounds they are personal appointments.

In addition to the specific clauses in our engagement contracts, we have a proven track record with multiple firms, who will all attest to our honesty and integrity.

More broadly, our outsourcing services range from independent consultancy through to the supplanting an entire team and taking over an entire client book and looking after client monies. The latter of those services is detailed in our case studies below.

 

Case Study: Varden Nuttall

Varden Nuttall was a mid-sized insolvency firm firm based in Bury. According to an IVA league table, it was the twelfth largest firm in the country with approximately 5,000 personal insolvency clients.

Following resignations of a number of their insolvency practitioners and other issues they needed a solution for the running of a number of their cases.

We assumed responsibility for all their Scottish appointments, including both Sequestrations and Trust Deeds. We took all appointments into our own name and administered all aspects of the cases, completely replacing Varden Nuttall’s insolvency practitioners and support staff. Importantly this included taking full control of the associated client monies with these cases, utilising our own client monies systems and service offering.

Following the now well-publicised client monies issues, Varden Nuttall entered Administration on 3rd June 2016.

We maintained our role during the Administration for the next nine months, after which we transferred the cases back to the Administrators.

 

Case Study: AMI Financial Solutions Ltd

AMI Financial Solutions was a personal insolvency firm based in Linwood, Paisley. We were engaged by AMI Financial Solutions whose sole insolvency practitioner wished to retire.

We took all appointments into our own name and oversaw AMI's staff who continued to look after the day-to-day administration of the cases.

When outsourcing this type of work, you need to be able to trust our experience and reputation. After all, if it was to go wrong, your reputation would suffer.  We have a proven track record of performing strongly and diligently in this market and would point to the following testimonial and industry analysis.

 

Testimonial: Eversheds Sutherland LLP

Eversheds Sutherland LLP is a global multinational law firm headquartered in London. It is one of the 50 largest law firms in the world with dozens of offices around the globe. From the east coast of the US to the archipelagos of Indonesia, Eversheds Sutherland is a global provider of legal expertise.

We have worked with Eversheds Sutherland for more than ten years on a wide range of projects. Here's Peter Bowen, Operations Director at Eversheds Sutherland, describing our working relationship in his own words.

We have worked with Barry Stewart and George Lafferty in relation to personal insolvency for over 10 years, starting when they were with Wilson Andrews.

Wilson Andrews had 60 staff, specialised in personal insolvency and had over 5,000 clients. Barry Stewart set up this firm in 2006, implemented all its procedures and controls and acted as its Managing Partner for 8 years during which it performed very strongly as regards the industry KPIs that Eversheds monitor for its creditor clients.

We have continued to liaise with both IPs over last few years in relation to personal insolvency in general and more specifically with Barry Stewart when we attend the Accountant in Bankruptcy’s Protected Trust Deed and Common Financial Tool Working Groups where he represents ICAS and R3.

Both IPs are very experienced in running and controlling large volume personal insolvency teams and we are happy to recommend them either as advisers in this industry or to be parachuted in to take on insolvency appointments at an existing large volume firm.

 

Accountant in Bankruptcy Review

The Accountant in Bankruptcy’s Annual Report and Accounts 2015/16 highlighted an industry average failure rate of 15% for Protected Trust Deeds (PTDs) closed that year.

However, the reality is that a number of large firms had failure rates way in excess of this. The worst recorded a failure rate of 88 percent.

We have been provided with our own figures by the AiB for 2016/17 - we failed less than 1.5 percent of the cases we closed in this latest year.  This is ten times better than last year's industry average of 15%.

We managed to maintain this exceptional failure rate while delivering the originally promised dividend. In fact, on average we delivered 1.2 percent above what was promised to creditors at the start.

 

Sequestration Transfers

We can also facilitate the transfer of sequestrations from one insolvency practitioner to another, which usually happens as a result of retirement or the sale of a business.

Because the transfer normally includes a court process some insolvency firms feel they need to engage expensive solicitors to do it for them.

Unlike some solicitors, who have never had an insolvency appointment in their name or even any experience of having gone through this process yet still charge in excess of £500 per case, we can complete transfers swiftly and efficiently for just £250 plus VAT and outlays per case.

Over the last 5 years, we have managed the court process for hundreds of sequestrations across just about every Sheriffdom in Scotland.

Whilst the new bulk transfer rules have significantly streamlined this process the rules are not retrospective so Sequestrations awarded before April 2015 still require to be transferred individually.

Professional Indemnity Insurance – our professional indemnity insurer is Mapledown Royal & Sun Alliance plc , Mapledown Underwriting LLP, The St Botolph Building 138 Houndsditch London EC3A 7AG and policy number is RTT262119/11273. The territorial coverage is worldwide (excluding professional business carried out from an office in the United States of America or Canada) and excludes any action for a claim brought in any court in the United States of America or Canada.


GLASGOW LIVING WAGE EMPLOYERBarry John Stewart and George Dylan Lafferty are authorised to act as insolvency practioners in the UK by the Institute of Chartered Accountants of Scotland. Company Registration Number SC 477598 | VAT Registration Number 192 5146 03 | Data Protection Registration A1056203 | FCA Registration Number 766693 | Registered office: 2nd Floor Suite 148, Central Chambers, 11 Bothwell Street, Glasgow G2 6LY.