When a party becomes unable to meet their financial obligations when they fall due, the incidence of insolvency arises for consideration. A creditor may have commenced insolvency proceedings by way of a Winding Up Petition (in the case of a company) or a Bankruptcy Petition (in the case of an individual).
When matters of insolvency and recovery arise, the barristers at Mercantile Barristers are able to give strategic and tactical legal advice to administrators, liquidators, company directors, creditors and debtors alike on their essential next steps.
As a general rule, where a debt is owed by a company, a petition may be issued if the debt is due now; the creditor has demanded it and it remains unpaid; the debt is undisputed; and the debt is £750 or more. Where the debt is owed by an individual, the creditor can only serve a Statutory Demand or file a Bankruptcy Petition where the debt is for £5,000 or more. The advertisement of a winding up petition can damage a company’s reputation within a very short period. The company will have 10 days from the date of the winding up petition to prevent the winding up being advertised.
Our barristers at Mercantile Barristers specialise in presenting and defending winding up petitions presented against companies for the non-payment of a demand or debt. Where necessary our barristers could bring their considerable skills to negotiate debt with both creditors and debtors to achieve a settlement.
If a negotiated settlement is not obtainable, our barristers are used to obtaining appropriate injunctions in the High Court to preserve the status quo, especially where the petitioning creditor refuses to refrain from presenting or advertising the winding up petition. Also, our barristers are able obtain Validation orders from the Court to allow directors to access funds or dispose of the company’s assets as appropriate if a winding up petition has been presented.
If either you or your company has been served with a bankruptcy petition or statutory demand; or if a bankruptcy order has already been made against you; or your Trustee or the Official Receiver is seeking a sale of your house or other property, our barristers can assist with advice and representation in court as necessary. It is recommended that you contact Mercantile Barristers for timely advice on your options going forward.
Our barristers advice also extends to: acting for landlords on defaulting tenants; administration, liquidation, Company Voluntary Arrangements and Receivership – for companies, directors, banks/lenders, regulatory bodies, insolvency practitioners, creditors both before and after the commencement of the insolvency process; advising distressed companies; and all forms of insolvency litigation including antecedent transactions and directors’ claims.
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