Insolvency can be a quick method of recovering money, particularly if your debtor wishes to continue in business. Following service of a Demand and if there is no denial within 21 days after service, we can start insolvency proceedings – meaning your recoveries will be maximised in minimal time.
Insolvency can be instructed at different stages, either after using fast-track collections or after judgment in a court action, where no payment has been made following the first stage of enforcement.
We offer two types of insolvency services – bankruptcy and liquidation.Tell us about your needs
If you are owed £3,000 or more, you can apply to make the debtor bankrupt to recover the money owed. This option is available to individuals, sole traders or partnerships. If a debtor is declared bankrupt, their full estate will be handed to the trustee (usually the accountant in bankruptcy) who will usually sell the debtor’s assets to pay its creditors and the costs of managing the bankruptcy.
After the Sheriff Officers have carried out a Charge, your debtor may have a few assets worth attachment, although still be trading – or, your debtor may have ceased trading altogether, owing you a substantial amount, in which case we can petition for your debtor’s bankruptcy. If the debtor wishes to continue in business or does not want to be declared bankrupt for other reasons, it is likely that they will contact us with settlement proposals. If we do not hear from the debtor, we will proceed with a bankruptcy order.
We will keep you updated on the progress of your case and inform you immediately of any developments.
In the event that a debt cannot be repaid, liquidating a company can be a final option to consider. After liquidation, a company will stop employing people or doing business, and its assets will be used to pay off debts. Liquidation only applies to Limited Companies where the debt is over £1,500.
Within one to two weeks of receiving your instructions, we will present a petition for the appointment of a liquidator who will attend the debtor’s premises to assess whether the debt can be paid by third-party funds. If the debt cannot be settled, the liquidator will assess whether it is worthwhile to take the liquidation further. We will keep you updated on the progress of your case at all times and discuss your options and next steps with you.
Our carefully selected team of insolvency solicitors will evaluate your debtor’s solvency at an early stage.
If the debtor company pays the debt in full with funds from a third party, we will present a note to the court to have the petition dismissed. If the debtor is unable to pay the debt but there are insufficient assets within the company to settle the liquidator’s fees, we will proceed further with the liquidation.