Asset Protection & Recovery
April 25, 2025Professional Negligence
April 25, 2025Debt Recovery & Insolvency
Debt Recovery & Insolvency
Recover What You’re Owed Effectively and Efficiently
If someone owes you money and isn’t paying especially when the debt is not disputed. You may be able to take swift and decisive legal action to recover what you’re owed.
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Criminal Defence Solicitors
Rather than going through the usual County Court process, starting insolvency proceedings can put you at the front of the queue. This includes issuing a Winding Up Petition against a company or a Bankruptcy Petition against an individual.
Proceed with Caution
This process is only suitable for undisputed debts. If the debtor disputes the claim, proceedings could be halted and you may be liable for their legal costs. In addition to court fees, you’ll need to pay a deposit to the Official Receiver. However, the public nature of these actions often motivates debtors to settle quickly. For this reason, a Statutory Demand or Draft Winding Up Petition can be powerful tools when used appropriately. If you’re unsure whether this route is right for you, contact us for expert advice before taking action.
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For Companies
If a company owes you more than £750 and the debt is undisputed, you can start by sending a draft Winding Up Petition with a warning letter giving them 7 days to pay. This often prompts immediate action, as businesses want to avoid the serious consequences of a formal insolvency process.
If payment isn’t made, the petition can be filed at court. Once served and advertised in the London Gazette, the company’s bank account may be frozen further increasing pressure to pay.
Important: Once the petition is advertised, it may attract support from other creditors, and withdrawal can become complex. Legal advice is essential.
For Individuals
To begin bankruptcy proceedings against an individual, the debt must be at least £5,000 and undisputed. The process starts with a Statutory Demand, giving the debtor 21 days to pay. If they don’t pay or challenge the demand, a bankruptcy petition can be filed and served personally.
Strict legal formalities must be followed to succeed at the hearing. If bankruptcy is declared, the debtor’s assets will be handled by the Official Receiver or an Insolvency Practitioner, and proceeds distributed to creditors.