Dealing with Liabilities

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This section provides details relating to creditor claims generally: adding, editing and adjudicating secured, preferential and unsecured creditors' claims are presented in separate sections.  Information relating to creditor records generally is shown below.

Creditor Claims

Creditor claims are accessed from the Financials > Creditors tab and double-clicking a creditor type.  The creditor claims screen will open at that class of creditor.

Creditor claims - opening creditor register.png

The screenshot below shows the creditor claims screen that has yet to be populated with claims.

Creditor register.png

You may select other classes of creditor without leaving this screen by selecting the relevant class in the top right of this screen.

Creditor register - select class.png

Details as to how to add or import the various claims is detailed in the related sections.  Please see the end of this page for links to those pages.

Dealing with creditors

Once the creditors have been imported, the creditor register will resemble the following.

Creditor screen - populated.png

You may select a subset of the currently selected class of creditor by selecting the holding account for those creditors, for example, only those creditors that are HM Revenue and Customs offices:

Creditor screen - change holding account.png

It may be that some of the expected creditors are not displayed, indicating that they belong to another holding account.   To change the holding account, [right-click] the creditor record and select [Change Claim Account].  The currently selected holding account is shown by a tick:

Creditor screen - change holding account 2.png

Select the correct holding account and click [OK] to the 'Confirm Action' dialog.

Adding another recipient for the creditor

A creditor may request that you send copies of any correspondence to their company's accounts office, their solicitor or debt collection agency.  

To add an additional recipient, first open the creditor record by [double-clicking] the creditor's name in the creditor screen, then selecting [Additional Recipients].

In the screen that's displayed, click [New Contact].

Add Contact 1.png


The additional recipient must be a Counterparty or Contact on the system, or be added as such.

You may select from:

  • Add new contact for {creditor} - displays the 'New Contact' form to adds new contact to the Counterparty creditor.
  • Add new contact - displays the 'New Contact' form but allows you to add a different Counterparty.
  • Lookup existing contact - displays a search form to select a previously entered Contact.

Add Contact 2.png

In this scenario - adding a firm of solicitors to receive copies of correspondence - select, Add New Contact and enter the relevant details.  The solicitor is a previously entered Counterparty, so the details can be populated by clicking the ellipsis at the end of the Company field.

Add Contact 3.png

When producing circulars, ensure that the Include Additional Creditor Recipients checkbox is selected at the Select recipients stage of the Document Production Wizard.

Add Contact 4.png

The 'additional recipient' is shown in the following screen of the wizard.

Add Contact 5.png

Adding an alternate payee for the creditor

A creditor may also request that you pay any dividends due to that creditor to a third party, for example, if the debt has been assigned under an invoice finance agreement.   

To add an alternate payee, first open the creditor record by [double-clicking] the creditor's name in the creditor screen, then selecting [Alternate Payee Details] and complete the relevant details.

Alt Payee.png

Deleting a creditor

To delete a creditor, simply [right-click] the creditor record and select [Delete Creditor].

Creditor screen - delete creditor.png

For obvious reasons, you will not be able to delete a creditor where a statement of affairs has been produced.  The following warning will result:

Creditor screen - unable to delete.png


Employees and Preferential Claims
This section provides the procedure to enter employees’ claims as preferential and unsecured creditors.  This section assumes that you have knowledge of different creditor priorities.
Secured Creditors' Claims
When entering secured creditors, they must be matched to a counterparty record. The position of secured creditors is automatically calculated on the ranking of their securities.  If you change secured creditor claims or the value of a charged asset the underlying security position is automatically recalculated.  You may also import secured creditors and their claims.
Unsecured Non-preferential Claims
This module provides the procedure to enter Creditor claims. Creditors and their claims have different entry forms depending upon the nature of the claim.  We will enter secured and unsecured creditors.  Employees’ claims are detailed in section 3.