Winding up proceedings relate to the recovery of debts due from a limited company and would normally be adopted in the case of higher value debts. The process would begin with us issuing a letter under section 122 of the Insolvency Act 1986. If payment is not made then a winding up petition is presented at court and then issued and served.
The court will notify the parties of a date when the petition will be heard. Provided there is no defence and the procedural formalities are complied with, unless payment is made prior to the hearing, a winding up order will normally be made.
Bankruptcy relates to the recovery of debts from an individual and, similar to winding up proceedings, would normally be adopted in the case of higher value debts. The process involves the issue and personal service of a statutory demand document upon the debtor by an agent or process server. The demand is not issued through the court so there are no court fees payable.
Should payment of the debt not be made within 21 days of service of the statutory demand then a bankruptcy petition will be issued and served. The petition is issued through the debtors local court and court fees are payable. A hearing takes place at the court and in the absence of any payment proposals an order of bankruptcy will usually be made.
The existing system of issuing claim forms has become slow and ineffective since the bulk issuing was transferred to the Northampton CCMCC (Via Salford). We have recently upgraded our own systems enabling us to issue proceedings electronically. As well …
We solely focus on business to business debt and have developed extensive expertise in this area with an 85% success rate for all debt we are instructed to recover.
