You may be asking why you should regularly check your employees' insolvency records. The answer is quite simple: so that you can follow the correct procedure for making enforcement deductions at the initial adjudication stage of insolvency proceedings and then, if insolvency is confirmed, for making insolvency deductions.
Insolvency proceedings
Insolvency proceedings are divided into two phases. The first is decision-making phase. At this stage, the debtor or creditors file with the insolvency court a proposal for insolvency. As soon as a proposal for insolvency is filed, information about the opening of insolvency proceedings is immediately published in the Insolvency Register. The opening of the insolvency proceedings is announced in the insolvency register by a notice within two hours of the filing of the petition (within two hours during court business hours). At this stage, creditors may file their claims. An important piece of information for employers is that at this stage of the insolvency proceedings, enforcement deductions are made and are not sent anywhere and are only deposited.
The second phase of insolvency proceedings is implementation phase. This stage occurs once the debtor is approved for insolvency. One possible solution is insolvency by instalment plan. In the implementation phase, the payroll payer starts to make insolvency deductions. These are governed by the same rules as the deductions for priority execution (unless otherwise specified).
This means that it shall be determined a non-forfeitable amount, which shall be deducted from the employee's net income. After deducting the amount that is not chargeable, you get the rest of the net pay, which shall be rounded off to an amount divisible by three and will be divided into thirds. The second and first third is withheld from the debtor to satisfy the insolvency deduction and sent to the insolvency administrator. The third third is paid to the debtor.
No enforcement deductions are made when insolvency deductions are made.
Insolvency Register
All information on the insolvency proceedings can be found on Ministry of Justice, the insolvency register can be found under via this link. The Insolvency Register is a public administration information system and is a publicly accessible list that can be consulted.
ALPHA Tip: Would you like to find out more about the insolvency proceedings, wherein different from foreclosure and what must be met for insolvency to be triggered? Take a look at ALPHA ACADEMY, where you can find educational videos on both insolvencies, both executions and other deductions from wages.
AVENSIO SW programme
To make your work easier, you have the option to perform insolvency control directly from the programme AVENSIO SW. The first option is to conduct the insolvency review directly from the employee's card. In this way, an insolvency check is carried out on each employee separately.
The second option (which is particularly suitable for organisations with a larger number of employees) is mass insolvency control. For bulk insolvency checking, you must have purchased the add-on module Mass insolvency control.
You can also search the insolvency register via the customer area MY ALPHA, via the ISIR tab.
More information to carry out insolvency checks on employees in AVENSIO SW in the document Insolvency control (Help - Online Help or MY ALPHA Customer Zone - Online Help).
