If your debtor fails to pay on demand or can’t pay, they may be deemed as insolvent. Insolvency action can be taken against private individuals, sole traders, partnerships, or limited companies. Debts must be over £750 in value for limited companies and £5000 for individuals and non-limited businesses such as sole traders.
Many creditors facing an unpaid debt situation often turn to the County Courts to file a money claim to get a CCJ, but they can also choose to start bankruptcy or winding up proceedings to secure prompt payment, which is our suggested method.
If you are a debtor and are served a ‘Stat Demand” you have 21 days to deal with a statutory demand. If you wish to dispute the demand, this must be done within 18 days by submitting an application to the court. If you want to pay the debt or come to an arrangement with the creditor, you must do this within 21 days.
After this 21-day period has passed, you, as the creditor, can begin formal insolvency proceedings. Up to this point, most debtors think they are in control, but once liquidation proceedings begin, that’s where it stops. A licensed insolvency practitioner is appointed to close the company or to bankrupt the individual. A company will be liquidated and its assets sold, and individuals will also have any assets sold to pay creditors.
London Debt Recovery always makes you the priority. Our rapid and extensive debtor profiling will show propensity to pay, and if there are no other insolvency proceedings, the petition paperwork can be drawn up and served.
In case of non-payment, insolvency proceedings may follow, with our in house legal team supporting you through the court hearing and resulting in a quick payment.
Feeling overwhelmed by insolvency proceedings? We can assist, taking limited companies to liquidation and individuals to bankruptcy. For detailed advice and support, reach out to the team today.
We work closely with a panel of lawyers who are specialists in recovery and insolvency.
We have negotiated favourable rates with our partners, and if legal action is appropriate, we will instruct lawyers on your behalf to recover your debts through the courts.
If a judgment is obtained but the debtor still fails to pay, we will discuss a range of enforcement options with you. This may include instructing a High Court Officer to seize goods from the debtor (who will sell them to get your money), obtaining a third-party debt order for recovery from third parties (like banks), or obtaining a charging order over the debtor’s property.
If you are considering taking legal action against a debtor, please contact us today. Additionally, if you have concerns as to the solvency of your debtors, we can also discuss insolvency options with you.
