Recovering Debts from an Insolvent Business
Yorkshire based Lupton Fawcett are experts at corporate bankruptcy and winding up proceedings. To speak to one of our solicitors, call us on 0333 323 5292, send us an email or fill in the online form on this page.
This applies to individuals. The debt must be £5,000 or over and be undisputed.
We will draft a Statutory Demand and arrange for it to be personally served upon the debtor. They then have 21 days to make payment or you can proceed with Bankruptcy.
If after 21 days the debt remains unpaid the next step is to file a Bankruptcy Petition. If instructed to carry this out we will draft the Petition, present it at Court and arrange personal service on the debtor.
The debtor may then make payment of the debt together with your costs. If no payment is received we will arrange attendance at the Hearing and they will be declared bankrupt. The Trustee in Bankruptcy will deal with recovering any assets and you will join all other unsecured creditors for a distribution of any available funds.
Winding Up Petition
This relates to Limited Companies again where a debt exceeds £750 and is undisputed.
We will send a letter giving three days notice of our intention to begin company winding up proceedings.
We will then negotiate payment terms on your behalf if appropriate. If no payment or agreement is received we will, on your instructions, draft a Winding Up Petition, file it at Court and arrange service upon the Company.
If the Company is unable or unwilling to make payment we will arrange attendance at the Hearing and seek a company winding up order. You will join all unsecured creditors for a pro rata distribution of any available funds. Secured and preferential creditors take priority though and may often leave little for unsecured creditors.
NB – If a Petition is challenged we charge an hourly rate for work carried out and costs can escalate considerably. If you are unsuccessful you could be liable for the debtor’s costs in addition to your own therefore you must be careful to ensure the debt is not disputed.
With offices in Leeds, Sheffield and York, we can offer our corporate bankruptcy and winding up services either on a face-to-face basis, by post or email. Get in touch with us today by calling 0333 323 5292 or sending us an email. Alternatively, you can fill in the online form and we will get in touch with you.