insolvency

 

MANY CLIENTS USE THE INSOLVENCY METHOD 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.

 

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0161 832 5000

A Winding up Petition can be issued against a company which owes an undisputed debt of over £750. A Bankruptcy Petition can be issued against an individual owing more than £5,000.

Company Debtors

The first step to commence Insolvency Proceedings is to issue a Late Payment Demand. In the majority of matters, receipt of the Late Payment Demand is enough to make a debtor pay without issuing proceedings.  However, if payment is not received within the time provided a Winding Up Petition can be issued.  The Winding up Petition is then pursued through to final hearing, with the debtor’s bank account being frozen in the process.
 

If the debtor is able to provide evidence to prove the debt is genuinely disputed, the Court may not allow the petition to proceed.   This may result in you being liable to pay the debtors’ costs. We will discuss any potential disputes with you at the outset of instructions

Personal Debtors

A similar process can be pursued against individuals or partnerships through the Bankruptcy process for debts over £5,000.  However, the creditor must first serve a 21-day demand. The debtor can apply to set aside the demand if the matter is disputed.

 

Both of the above procedures should only be used in matters where no dispute exists. Using the procedures in the knowledge that the debt is disputed can result in you having to pay the debtors legal costs. We will advise you as to the suitability of the Insolvency process and thus lessen any risk.

 

Get in touch

 

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
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