An insolvency proceeding is a process taken when an organisation or individual are no longer able to meet their financial obligations and pay their creditors when debts are due and usually take place after less formal arrangements have failed and can be the result of bad financial management, changing market trends, heightened expenses and reduced income.
Bankruptcy proceedings can begin if the debtor owes more than £5000.00 and are not disputing the debt. The first step in the process is for you as a creditor to serve on the debtor a formal demand for payment in the form of a statutory demand.
If payment isn’t made in accordance with the time set out in the statutory demand then a Bankruptcy Petition can be sent to court. A Bankruptcy Petition is a formal document and once issued the court will give it a unique number set a date and time for hearing. As a Creditor you must serve the Petition on the debtor and provide to the court evidence of service.
If successful at the hearing, the debtor will be made Bankrupt and the appointment of a Trustee will follow.
If the debtor wishes to avoid Bankruptcy then they must agree to and pay before the hearing both the petition debt and the associated costs.
How Athena Debt Recovery Can Help
- Your debt is treated as if it were money owed to us, and we collect it as quickly as possible
- We can call on and you can draw on the additional expertise of our Commercial litigation and Insolvency teams
- We are approachable, commercial and always happy to discuss individual matters
- You can rely on our use of the latest technology to ensure an efficient and reliable service
- We can increase your recoveries by working smarter
The recovery of debts is extremely important to avoid financial pressure of your business.
We offer a range of services to help you do this and a highly skilled team of commercial debt recovery lawyers who specialise in Pre-Action Collection, Court Proceedings, Enforcement of Judgments, Bankruptcy and Winding Up and Foreign Debt Collection.
We offer a competitive quality debt recovery service for general debt matters.
We also provide a bespoke service for difficult debts or where insolvency proceedings are appropriate.
We can undertake bulk recoveries or debt portfolios.
About the author
Senior litigation executive and manager
Iain is a senior litigation executive and manager of Athena Debt Recovery which is part of the firm’s commercial litigation department supervised by our head of commercial litigation partner Stephen Boyd.
Iain has over 28 years’ experience in Commercial Debt Recovery having worked in both Private Practice and Industry and has extensive experience working across all industry sectors and has a particular expertise in working with Insolvency Practitioners in advising and recovering outstanding insolvent company ledgers.
Iain brings a pragmatic and commercial approach to recovering debts.
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We offer a free initial consultation and if clients have a viable claim, we offer a variety of retainer options including no win – no fee arrangements.
Every case or potential case will be assessed, on its own merits.
If you have found this article interesting and would like to learn more about how Athena Law can help you please feel free to contact the writer, Iain Bould, at firstname.lastname@example.org or via the contact page on the website.