How Escalate can help – an award-winning process for Insolvency Practitioners to recover more for creditors

Since the 2013 Jackson reforms, pursuing an insolvency claim has become costly, lengthy and risky to undertake. As a result, many insolvency practitioners reluctantly write-off good claims.

That’s why Escalate was created – a smarter way to resolve commercial and insolvency disputes that prioritises the returns available for creditors by focusing on a quick settlement, removing upfront costs and minimising risk.

Escalate takes a completely fresh approach. Once an initial review has been completed, Escalate utilises a two-stage process: a period of intensive negotiation through our specialist Escalate partners targeting a settlement in under three months; and then, if necessary, litigation using specialist legal teams that are funded all the way to the High Court.

By looking at the process from your perspective, we’re transforming how professionals like you are managing insolvency disputes.

Download our Insolvency Practitioners Brochure

CLICK HERE

NO FINANCIAL RISK

You only pay if we recover on your behalf; adverse cost protection is included

SUPPORTING YOUR CASHFLOW

We agree a fixed fee of 30% of the amount recovered; our cashflow funding line provides up-front advances

'ONE STOP SHOP' SOLUTION

We manage everyone involved to streamline the process

RETENTION OF A 'SAY' IN THE OUTCOME

You remain the main beneficiary of any award, despite Escalate assuming all of the cost and risk

FASTER SETTLEMENTS

We’re all incentivised to find a quick, commercial solution

Traditional insolvency dispute process

The Process:

The process typically begins when an unpaid invoice is processed either in-house at cost or using a traditional debt collection agency that is unable to progress contested litigation to a conclusion. Disputed claims (or antecedent transaction claims) are therefore passed on to via lawyer, perhaps on a conditional fee arrangement at a multiple of costs.

At this stage, you might need funding and insurance – but they are often expensive, their case reviews may take time to reach a conclusion, and the claims could be rejected anyway. Certain funders may offer to take an assignment – but this involves a loss of any say in the claim and reduces the recoveries available. The inevitable delays prevent Insolvency Practitioners from closing out estates in a timely manner, and the actual recovery is generally 50% or less.

What this means:

Costs are uncapped and some fees may need to be paid upfront

Recovery is not certain; and you may need to pay the defendant’s costs if the case is lost

The process can take 18 months on average and requires significant management attention and time

Escalate process

The Process:

The Insolvency Practitioner engages Escalate via a rolling annual engagement or a case-by-case agreement. In return, Escalate will manage the entire process and all of the professionals involved in it. On engagement, claims are reviewed rapidly and for free. The likelihood of recovery is discussed and a merits-based action plan is agreed. We agree a contingent fixed cost of 30% at the start, which is payable only out of recoveries made. We can supply a working capital funding line and up-front advances can be made to assist cashflow where needed.

Full indemnity is given to the Insolvency Practitioner so all cost and risk is removed. We begin negotiating on your behalf as soon as you engage to encourage the defendant to settle quickly in your favour, without the need for litigation. We allow up to a maximum of three months for this negotiation.

What this means:

No financial risk – we provide a full indemnity for legal costs and any adverse cost risk in progressing claims

Cashflow prioritised – we agree a fixed fee, there are no upfront costs, and a cashflow funding line may be offered

Turnkey solution – we manage all of the stakeholders in the litigation process for you

Retention of a ‘say’ – you remain the main beneficiary of any award

Incentives to move fast – all parties are incentivised to find a quick, commercial solution

In addition, Escalate can help you with your duties under the Statement of Insolvency Practice (SIP2) – either by offering advice on the SIP2 report, or by preparing the report. We can also then pursue the recovery of any potential claims or monies owed.