If your debtor is a an individual or trading a a sole trader or partnership and you are owed more than £5,000 on an undisputed debt then we can issue a Bankruptcy Petition against the debtor in a similar way that a Winding Up Petition is issued against a limited company.
This Bankruptcy Petition is presented to the local Court of the debtor. Various searches are carried out at both the debtor’s local Court and the Royal Courts of Justice before a Petition can be presented to ensure that there are no prior Petitions pending.
If you do not have an unsatisfied Judgment, then before you can present the Bankruptcy Petition a Statutory Demand must be personally served on the debtor.
This sets out what debt is due and informs the debtor that your intention is to begin Bankruptcy proceedings if the debt is not satisfied within 21 days of service of the Statutory Demand.
If the debtor believes that they have a dispute to the amount claimed they must file an Application to set aside the Statutory Demand at Court within 18 days of service.
The cost of Bankruptcy is around £2000 so we would only recommend going down this route a matter of principal or if we could establish that this option would lead to payment.. The Bankruptcy Petition, like the Statutory Demand, also needs to be personally served on the debtor and we would need to instruct a local agent to attend the hearing on your behalf.
If no response is received from the debtor to the Bankruptcy Petition or payment made a Bankruptcy Order is usually made at the hearing and a Trustee in Bankruptcy appointed to deal with the debtor’s affairs.
Please get in touch if you require any further information.