Bankruptcy is only available for debts equal to or in excess of £5000.00 that are either undisputed or where a CCJ has been entered and remains unsatisfied.
We initially serve a statutory demand on the Debtor. This is a formal document stating that bankruptcy proceedings may be commenced if payment is not received within 21 days of the date of service of the statutory demand.
The statutory demand is personally delivered to the Debtor using a process server. There are other methods available subject to certain rules being complied with.
If no payment is received after 21 days we can proceed with the bankruptcy petition.
In order to make a bankruptcy petition a court fee and official receiver’s deposit must be paid. This is a recoverable cost provided the debtor has sufficient assets.
Winding up a company
Winding up a company is only available if your debt is over £5000.00 and the debt is undisputed or a CCJ has been entered and remains unsatisfied.
With winding up proceedings there is no need to serve a statutory demand but the winding up petition must be advertised in the London Gazette.
A court fee and official receiver’s deposit is also required for a winding up petition. Again it is a recoverable cost should the debtor have sufficient assets.
Contact our specialist Commercial Debt Recovery Solicitors for more information.