Debt Recovery

Bankruptcy

Bankruptcy is only available if the debt owed to you is over £750.

The first step towards bankruptcy is to issue the debtor with a statutory demand. This is a formal demand that bankruptcy proceedings may be commenced if payment is not received within 21 days of service of the demand. The Debtor has 18 days to dispute the statutory demand and file an application to set aside the statutory demand at the local court.

Service of the demand must be by hand delivery or can be met by posting the statutory demand through the debtor’s letterbox subject to certain rules being complied with. For example, by making reasonable enquiries to ascertain that the debtor is resident at the address.