We are experts when it comes to handling insolvency proceedings and providing insolvency support.
It can be argued that a client’s inability to pay their debts on time renders them insolvent.
If this is the case then bankruptcy or winding-up proceedings can be the only way to reclaim your money.
You can submit a petition to the courts to begin winding-up proceedings against the debtor’s company or, if they are an individual or sole trader, for their bankruptcy.
A petition to wind-up a company can be issued where the debt, worth more than £750, is due. The debt must be undisputed and remain unpaid despite the creditor’s demands. More often than not, the threat of insolvency proceedings is enough to invoke payment of the balance.
When a winding-up order is granted it must be advertised in the London Gazette. Other creditors of the debtor company are then given the opportunity to join the proceedings.
If your debtor is an individual, a statutory demand must be served upon them. This will give them 18 days to pay before a bankruptcy petition is issued.
A bankruptcy petition will be issued at the debtor’s local county court. Either an official receiver or insolvency practitioner will be appointed to investigate the debtor’s financial circumstances.
Once the investigation has taken place they will be able to re-distribute any assets they have between the creditors.