The equivalent to winding-up proceedings in relation to individuals which includes sole traders and partners of a partnership is bankruptcy. The bankrupt’s assets will be shared out amongst the creditors and all further earnings of the bankrupt may be used to contribute to the outstanding debts.
In order to commence winding-up or bankruptcy proceedings against a debtor, you will need to show that they owe you more than £750.00 on an unsecured debt and that they do not dispute the debt. Unless you can provide strong evidence to show that this is the case, it is usually advisable to obtain a CCJ before going ahead.
To start the proceedings, we will serve a so-called Statutory Demand on the debtor, which is essentially a “final warning”. The demand will give the debtor 21 days to pay the debt or to object to the demand and to have it set aside.
If he fails to repay the amount demanded, we will make a petition to the Court. A hearing date will be set by the Court to decide whether they approve the insolvency. After this, the Official Receiver or Insolvency Practitioner IP will take over and carry out the insolvency. The or IP will investigate the debtor’s financial affairs to see whether there has been any fraudulent activity in the past which may turn up further liabilities to the debtor or company’s directors. The IP will liquidate the assets and divide them between the creditors.
If you are owed money by debtors and need help in claiming the money that is rightfully yours, then give us a call on 01604 828282 or fill out our online contact form. Our experienced debt recovery team are here to help.
