Statutory Demands, Bankruptcy and Winding Up Petitions
In the unlikely event that enforcement is unsuccessful you may wish is to start insolvency proceedings. You can only do this for debts of £750.00 or more (including any contractual interest and late payment compensation).
Insolvency proceedings can be issued against:
- a company (Limited or PLC) by presenting a winding up petition
- an individual or sole trader by presenting a bankruptcy petition
- a firm by presenting a winding up petition against the firm and/or bankruptcy petitions against the partners
A statutory demand must always be served on the debtor before a bankruptcy petition is presented. The Sheriffs Office has an experienced team of Process Servers operating nationwide that will handle this procedure for you (please see below).
If payment is not made, the petition can be presented. Please note that this may affect the debtor’s ability to make payment as banks accounts are frozen.
It is important to use insolvency proceedings only where you are sure no defence will be made. It will be extremely beneficial if you have copies of written promises of payment.
Be warned: If there is any dispute, the court will dismiss the petition and you may have to pay the debtor's costs.
Of further note, when issuing a Winding Up Petition against a company, once it has been advertised you are NOT ALWAYS in control. Other creditors may support the petition and take it over.
Service of a Statutory Demand and/or Insolvency proceedings.
Our team of experienced Process Servers operate nationwide and will serve your documents.
For further information on the preparation of bankruptcy/insolvency proceedings please
or call us on 0845 688 9750.
