The Insolvency Service has issued a £6m tender for debt recovery services relating to bankruptcy. The three-year contract covers the pursuit and collection of debt in both the consumer and commercial space on behalf of the official receiver.
Beyond the initial three-year term is an option to extend the contract, which is worth between £3.5m – £6m, for a further two years. Most recovery attempts (95%) will involve pursuing income payment agreements from bankrupt individuals or book debt collections on money owed to the bankrupt.
PPI insurance compensation refunds and recoveries from company directors are also covered by the contract.
The remaining 5% of instructions will involve antecedent transactions – where assets disposed of before an estate went bankrupt can be pursued.
Successful bidders should have specific knowledge of insolvency legislation and be qualified legal practitioners and Law Society members to handle the antecedent transaction side of the contract.
The Insolvency Service currently has a provider in place for this but the contract expires in September 2013, so it is re-tendering the service in a bid to ensure minimum interruption to the recovery process.
Interested parties should contact the Insolvency Service using the email address [email protected] by 17.00pm on 12 December 2012.
Invitations to tender will be issued on 28 January 2013.