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What happens at this stage

We at Carlton Huxley Ltd try to avoid civil litigation as it is a slow and expensive process but should our efforts to resolve the matter by negotiation fail, we would then need to consider moving to the litigation/liquidation route. We will deal with all aspects relating to the management of your case and may conduct further investigations as part of it on behalf of the litigator/liquidator.

Due to the work done at stage 1, you will be better equipped to submit your proof of debts and because of the work at stage 2, you will know what assets the potential defendants have and whether they have the money to repay you and other claimants.

It is impossible to give a cost of litigation as it really does depend on the facts and circumstances of the case, such as the number of claimants, value of the claim, age of the case and the jurisdiction in which we are working.

If a company goes into liquidation, then it is the office holder (liquidator) who shoulders the responsibility for funding. Normally we would propose that we are engaged and paid by the liquidator to assist in the locating and recovery of assets and any other enquiries that they may need doing, so that costs do not fall to you or other possible claimants.

If a claim goes down a civil route then that would either have to be funded by the claimants or by a third party litigation funder.

There are two elements to a civil case,
A. Getting a Judgement
B. Enforcing the Judgement

Both elements need funding and you need to know before you start if the defendants can pay. Stage 1 of the process provides clarity on the evidence of the claim, and stage 2 often provides the evidence of assets and an ability to pay you.

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