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Questions About Receivership Accounts

What are the risks I have if a company I am dealing with is under receivership?

This company is under receivership on account of the governments’ allegations stating they have commited sales tax fraud. The received approval from the courts to have the company go under receivership while their lawyers prove their innocence. They said normal business operations will commence in the meantime.

This company is a precious metals company and I have money with them in a pool account that is apparently backed by precious metals. I can liquidate it at anytime.

But now I wonder if they are under receivership, if they will stop all payments to their customers.

Or… will it be business as usual while they resolve this?

Industry Expert answers:

Receivership is, in most cases, an involuntary proceeding brought by the company’s creditors (in this case the federal government) for the creditor’s benefit .

You never hear of a company ASKING to be put into receivership. The more likely scenario is that the government put them into receivership in order to keep track of the company’s assets until they get the go- ahead to take them.

If it was my money, I would liquidate Monday morning, in case there is not any left over after the feds take theirs off the top. Plus,I wouldn’t want to be the last investor left treading water in the pool, and there are probably more and more grabbing their towels as word of the receivership spreads.

What happens if the company that I have ordered a bed off go into receivership?

I paid a two hundered and fifty pounds deposit on a bed two weeks ago. The local paper reported on Saturday that this company has shut its doors and that it is likely to go into receivership provided bankers approve. I paid a deposit using my ordinary bank card. Will I get my money back ( Nat West Advantage Account) not a credit card

Industry Expert answers:

Your best chance of getting anything back is that if the bed you ordered happens to be in stock, then you may receive the bed, as the administrators have to satisfy as many orders as they can from existing stock. If this doesn’t happen your chances of getting back more than a few pennies in the pound is virtually nil, I’m afraid – you’ll be WAY down the creditors list.

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