what is the role of the creditor in
insolvency there are different types of creditor there’s a preferential
creditors being typically employees for wages and Holiday pay they’re sometimes
secured creditors typically banks for their loans and over drafts and there’s also
unsecured creditors typically trade creditors and other creditors such as
employees for redundancy and paying over notice they all have a say in the
insolvency process the the insolvency practitioner will possibly have a
creditors committee where certain representatives will act as a sounding
board and give him direction and also agree his costs for the work that’s done
sometimes if creditors committee is not appointed then the creditors will have
to say exercise the same control over the insolvency practitioner but either
through the initial creditors meeting and through the reporting process.
Creditors have rights throughout the insolvency process if they’re
dissatisfied with the conduct of the insolvency practitioner if
certain levels of creditors by value percentage can ask for meetings to be
called for the replacement of the insolvency practitioner and they can
also you know go to court to seek the replacement of the insolvency
practitioner or to challenge his fees so the creditors are involved throughout
the insolvency process