Individuals
Bankruptcy is only available if your debt is over £750.
The first step towards bankruptcy is to issue the debtor with a statutory demand. This is a formal demand that bankruptcy proceedings may be commenced if payment is not received within 21 days of service of the demand. The Debtor has 18 days to dispute the statutory demand and lodge an application to set aside the statutory demand at the local court.
Service of the demand must be by hand delivery or can be met by posting the statutory demand through the debtor’s letterbox subject to certain rules being complied with. For example by making reasonable enquiries to ascertain that the debtor is resident at the address.
Bankruptcy should not be considered where there is any hint of a dispute. If there is a dispute, it is advisable to obtain a Judgment first (please see the issue a claim and Judgment sections).
For further details on costs please visit our debt recovery calculator under the section statutory demand or contact the debt recovery team for the bankruptcy costs involved on 01942 774155.
Winding up a company
Winding up a company is only available if your debt is over £750.
To be eligible to commence winding up proceedings against a company, more than 21 days must have elapsed since the letter of demand was sent.
Winding Up a company should not be considered where there is a hint of a dispute. If there is a dispute, it is advisable to obtain a Judgment first (please see the issue a claim and Judgment sections). For further details on costs, please contact the Debt Recovery team on 01942 774155.
