BANKRUPTCY

BANKRUPTCY

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.

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, our Bankruptcy Barristers are able to give strategic and tactical legal advice to administrators, liquidators, company directors, creditors and debtors alike on their essential next steps.

The expertise of our Bankruptcy Barristers includes:

• Company Voluntary Arrangements – This formal payment plan for a struggling company needs to be approved by 75% of creditors (by value) and is designed to help reduce monthly payments. We have worked with companies, directors, creditors, insolvency practitioners and banks/lenders to secure the best possible outcome for our clients.
• Receivership – A receiver can only be appointed by a floating charge holder, such as a bank or a lender. Our Insolvency barristers have provided legal support for businesses in receivership, as well as banks and lenders looking to use it to collect a debt.
• Individual Insolvency- – for example, where a Statutory Demand or Bankruptcy petition have been or need to be filed.
• Insolvency Litigation, such as antecedent transactions and director’s claims.
• Liquidation.
• Business Recovery.