Issue a Statutory Demand
The Insolvency Act basically says that if a company owes you £750 or more, or an individual owes you £5,000 or above, and has not got a legitimate dispute then they must pay you in full or come to an agreed arrangement within 21 days of having a statutory demand served upon them.
Failing to do so they risk being made bankrupt in the case of an individual or a winding up petition issued against them in the case of a company.
What happens after I instruct you ?
Once your instruction request for a statutory demand is received the following will happen:
- One of our team checks what your statutory demand requirements are.
- We check the fee is agreed.
- Your case is loaded onto our online management system.
- The system emails you confirmation of your instruction.
- Payment arrangements are put in place.
Instructions received outside of business hours are dealt with the next business day.
- One of the team will then draw up the statutory demand, and allocate the case to local Certificated Enforcement Agent or Process Server.
- These experienced people are part of a national team covering the country.
- The Certificated Enforcement Agent or Investigator will attempt to serve the demand as per the rules of service.
- This will either result in a payment or escalation.
- As actions are completed the case management system is updated.
- If it is a payment we would deduct our fee and transfer the balance to you.
- If it is a escalation we would discuss your next options. Start legal proceedings - bankruptcy, or issue winding up petition.
Impact of Bankruptcy
Bankruptcy is still a very serious matter though it usually only lasts for a year.
Some of the issues whilst a person is bankrupt:
- They can not apply for more credit.
- If they own their home, it may have to be sold.
- Some of their possessions might have to be sold.
- Any items on finance such as TVs, white goods, vehicles, etc, may have to be returned to the finance companies.
- Some jobs forbid bankrupts or ex-bankrupts to continue working.
- Their details will be on a public register and there will be an advert in the local newspaper.
- It can effect their immigration status.
Impact of Winding up Petition
If a company has a winding up petition issued against it the company must stop trading immediately as if it does not then its directors may be held personally liable for continuing to trade when the company was insolvent.
The details of the petition will be publicly advertised and then the companies bank accounts will be frozen not to mention the costs of the whole process will be very expensive.
The process starts with a statutory demand where we draw up the document then we get a Certificated Bailiff / Certificated Enforcement agent or a process server to serve the statutory demand upon the debtor.