This episode of the Insolvency & Law Business Advice Show outlines a specialised ODLA Recovery Service designed to resolve overdrawn director’s loan accounts before a company enters formal insolvency.
The process typically involves the director’s resignation to prevent conflicts of interest, followed by the legal assignment of the debt to the consultancy. By transferring the debt, the firm takes over the recovery and negotiation phases, aiming for a commercial settlement rather than costly court proceedings.
Once a settlement is reached and paid, the director receives a Certificate of Satisfaction and may be reappointed to their position. This structured approach provides independent management of complex company assets while offering a documented resolution for directors and their advisors.
While not a substitute for insolvency, the service helps companies realise value from difficult-to-recover debts through a formal, transparent workflow.
