Expert advice regarding bankruptcy
If your debtor is an individual and you have an unsatisfied Judgment then you may present a Bankruptcy Petition against the debtor. This is presented to the local Court of the debtor. Various searches have to now be carried out at both the debtor’s local Court and the Royal Courts of Justice before a Petition can be presented to ensure that there are no prior Petitions pending.
If you do not have an unsatisfied Judgment, then before you can present the Bankruptcy Petition a Statutory Demand must be personally served on the debtor.
This sets out what debt is due and informs the debtor that your intention is to begin Bankruptcy proceedings if the debt is not satisfied within 21 days of service of the Statutory Demand.
If the debtor believes that they have a dispute to the amount claimed they must file an Application to set aside the Statutory Demand at Court within 18 days of service.
The costs of Bankruptcy can often be prohibitive for creditors as the Court fee, which includes the Official Receiver’s deposit, is quite substantial. The Bankruptcy Petition, like the Statutory Demand, also needs to be personally served on the debtor and we would need to instruct a local agent to attend the hearing on your behalf.
If no response is received from the debtor to the Bankruptcy Petition or payment made a Bankruptcy Order is usually made at the hearing and a Trustee in Bankruptcy appointed to deal with the debtor’s affairs.