The first step to start Insolvency Proceedings is to issue a Late Payment Demand which Stripes do on as little as three days notice. Often that is enough to make a debtor pay a debt without proceedings. A Winding up petition can then be issued if payment is not been made within the time frame allowed. We then pursue the Winding up petition through to final hearing, with the debtor’s bank account being frozen in the process.
If the debtor company is able to provide evidence to prove the debt is genuinely disputed, the Court may set aside the petition. This may result in you being liable to pay the debtors’ costs, and care is required to consider any potential disputes with us at the outset of instructions.
A similar process can be pursued against individuals or partnerships through the Bankruptcy process for undisputed debts over £5,000. However, the creditor must first serve a 21 day demand and the debtor can apply to set aside if it has a Defence, before a Bankruptcy petition can be issued. If a debtor is wound up or made bankrupt, then any assets in a Company or owned by an individual can be realised to pay creditors individual property.
Our clients use this as a preferred option to the County Court Claim as it can exert enough pressure on the debtor to force them to pay the debt , it is a quicker and usually a less expensive option and we can often recover all of your costs.
As with all the steps in the Stripes legal recovery process, you will be in control of what happens next. You can make those decisions and issue your instructions including any supporting documentation by using one of the following methods;
- Phone to discuss any queries and or to instruct us on 0161 832 5000
- Use the ‘Get Started’ form at the bottom of this page
- Fax: 0161 439 5050