Legal Advice for Declarations of Solvency
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Some discretionary payments – such as gifts or dividends – can be reversed on the subsequent insolvency of the payer within a certain period – that is, the insolvency professional supervising the payer’s insolvency may be able to compel the recipient to return the voluntarily-paid funds.
This issue can be ameliorated to some degree by ensuring that the doner makes a declaration of solvency before making such a discretionary payment – i.e. swears on oath that they are sufficiently solvent to make the payment, with no reason to suppose that status might change.
The requirement for a solvency declaration also arises in some other circumstances, such as the redemption of capital of a company, and for some other types of dividend payment.
This product comprises our preparation on your instructions of an appropriate declaration of solvency that you can then swear if needed.
How long will it take?
We don’t generally do anything for new clients until our process of client retention has concluded – this involves agreeing the scope of what we are doing for the price (our terms are below), setting-up our client record, and producing the bill (payment in advance is required for all new clients).
After that, the production of the declaration is a job that we can undertake in less than an hour once we can schedule it in our workflow, that can depend on how busy we are at any particular time. We would not usually take-on a job for which we could not engage within about a working week.