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Debt Advice Recovery Farleys Solicitors
Debt Advice Recovery Farleys Solicitors

6. Starting Insolvency Proceedings

Starting Insolvency Proceedings

Winding-Up Petitions and Bankruptcy

If a debtor defaults on payments or fails to respond to a statutory demand, you may be forced to petition the courts to begin winding-up proceedings on their company or, if they are an individual debtor or sole trader, declare them bankrupt.

Bankruptcy and winding-up proceedings can sometimes be the only way to reclaim outstanding funds. If such serious proceedings become necessary, the debt recovery solicitors at Farleys can provide legal advice and support at every stages of the process, handling the matter on your behalf.

Bankrupting an Individual

Our debt recovery experts will draft a bankruptcy petition, and will issue the petition at your debtor’s local court. The petition will then be served to the individual, making them aware of the fact that bankruptcy proceedings have been initiated.

Once the bankruptcy order is made, it will be advertised in the London Gazette. An official receiver or insolvency practitioner will be appointed to investigate your debtors financial affairs, collating their assets and re-distributing them amongst the individual’s creditors.

Winding-Up a Company – Compulsory Liquidation

If petitioning for the winding-up of a company becomes necessary in your debt recovery case, our experienced solicitors will draft a winding-up petition and issue it to the courts. Following the presentation of a winding-up petition, it must be advertised in the London Gazette. The court process must also be open to any other creditors of the company in question, allowing them to join the proceedings as a means of reclaiming outstanding debts.

During the initial stages of the winding-up process, a liquidator will be appointed. The liquidator will gather the company’s assets and attempt to realise or sell the assets, in order to repay the firm’s outstanding debts to creditors. Following this stage of the process, the company will be dissolved.

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To speak to a lawyer about your options under UK debt recovery law, contact us.

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