Insolvency & Administration
Wrongful trading analysis, preference claims, and solvency assessments for insolvency proceedings.
Insolvency Forensic Accounting
Sterling Forensic provides forensic accounting services in insolvency and administration proceedings. Our work includes wrongful trading analysis under s214 Insolvency Act 1986, preference and transaction at undervalue claims, director disqualification proceedings, and solvency analysis at key dates.
We reconstruct the financial position of insolvent companies at monthly intervals using management accounts, bank statements, and creditor records, applying both balance sheet and cash flow solvency tests.
What We Cover
- Wrongful trading analysis (s214 IA 1986)
- Preference and transaction at undervalue claims
- Director disqualification proceedings
- Solvency analysis at key dates
- Work-in-progress and retention valuations
- Construction insolvency in TCC context
Frequently Asked Questions
What is wrongful trading and when is a forensic accountant needed?
Wrongful trading occurs when directors continue to trade when they knew or ought to have concluded that insolvent liquidation was inevitable. A forensic accountant reconstructs the company's financial position at successive dates to identify the earliest point at which insolvency was inevitable, which determines the quantum of the claim.
Can Sterling Forensic assist with construction company insolvency?
Yes. Construction company insolvency frequently involves complex work-in-progress valuations, retention balances, and subcontractor claims. We combine insolvency expertise with construction quantum knowledge to address the financial accounting dimensions of construction insolvency in TCC and insolvency court proceedings.
Related Practice Areas
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