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Revealed: Challinors files notice to appoint administrators

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  • The Senior Partner states "its good news..." This is rather insensitive statement. Maybe "good news" for the partners who are responsible for this mess; but I suspect the creditors don't see this as "good news". I'm amazed that the SRA are not getting involved.

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  • A quick perusal of Companies House shows that a new company called Challinors Legal was incorporated on Tuesday, quick pre-pack to existing partners anyone?

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  • The legal profession is unpopular enough as it is. If it become linked with a business model of, administration, pre-pack and walk away from all debts, then it won't even be able to get credit from Wonga.

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  • Good detective work Jasper, very interesting.

    The pre-pack administratiom routine is a complete farce in the UK. Time and time again we have acted for clients who ultimately have been unable to salvage anything of worth as another chancer manages to dogde the creditors, only to then see the same character turn up at the same address, same suit and same shadyness but in a different corporate guise. Football clubs (including one "unbroken" club from Glasgow which has 140 years of unbroken history, yet no history of debts) are also famous for this perfectly legal routine; the large institution effectively escapes scot-free, whilst the poor small traders relying on their business and the income generated from it are left fighting over 8 pence in a pound.

    The fact law firms are now doing this saddens me and shows that the partners involved at Challinors are no better than any other high street wheeler and dealer.

    The Government must seriously begin to look at this; tax avoidance and benefit fraud are costing millions, but I would love to see the figures that creditors (who ultimately will be paying the taxes) have been swindled out of by cheats like Challinors.

    p.s If the clients have any sense and moral fabric, they will ditch the "newco" and their hollow partners.

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  • I agree with Simon's comments - very insensitive - how must the support staff be feeling and are the clients' running for the hills................?

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  • “It’s a good news rather than a bad news story as far as we’re concerned ..."

    I'm damn sure it is! But with respect, Mr Griffiths, it's the creditors that as a supposedly professional person you should be rather more concerned about.

    If there is going to be a pre-pack it's another disgraceful example of solicitors looking after their own interests at the expense of those of their creditors.

    Partners who are unable to pay the firm's debts in full should not be allowed to practise other than as employees. This always used to be the case before LLP's were allowed, and the profession was much better for it. The ability to incorporate and dump creditors has merely resulted in firms being willing to take risks that should never have been taken.

    Solicitors who default on their debts are dragging the good reputation of the profession into the dirt.

    But of course the SRA won't get involved. They're scared witless of taking on firms of any size. It's much easier to get a `result' by persecuting small firms who can't afford to defend themselves effectively.

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  • Revealed: Challinors files notice to appoint administrators

    A spokesperson at the SRA said it is unlikely that they will intervene in this case as this is not likely to be an administration. !!!!!

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  • They don't even appear to be an LLP, surely if they don't pay up to the client who lent them the money they'll be joint and severally liable? Unsurprising then that the client is stat demanding the partners (I'm sure I read that in an earlier article).

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  • Good digging Jasper. Rumours have it millions are owed to creditors and according to local press apparently they borrowed substantial amount from atleast another individual. It's definitely "good news" for some.... The decent things is for the partners to leave the profession... Living the "high life" and nice holidays at the expense of creditors is not great...

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  • In this case a solicitor who borrowed £350k off his client and failed to repay it was struck off - http://www.sra.org.uk/solicitors/code-of-conduct/guidance/case-study/integrity-trustworthiness-independence.page

    So why aren't the SRA even interested in this default?

    Should any of us really bother about paying our debts now?

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