Served with a Bankruptcy Petition?

If you are being threatened with or have been served a bankruptcy petition, here is what you need to know.

Know your law

A creditor can only apply for a bankruptcy petition if you owe more than £5,000 and if they can prove they tried other, less abrasive means, to collect the money such as issuing a legal notice in relation to monies owed (called a statutory demand). If the Creditor is threatening you with bankruptcy without having followed the correct protocols, then in some cases this can be grounds for setting aside the petition.

Try and settle outside the courts

Always try and come to an arrangement with your creditors without going to court! The advantage of this is that you can settle the debt on your own terms, such as renegotiating a new and more affordable payment plan. This will work for all parties, save on legal costs, and the creditor may be inclined to accept an out-of-court settlement if it means they are on the road to getting their money back. However, if the bankruptcy petition has been issued, there will be a requirement for you to attend the Court to explain your case or have independent representation.

Challenge the petition

If you are unable to settle outside the court, you can defend the petition, if you are not in agreement with the amount outstanding. You will have set out legitimate and convincing reasons why the bankruptcy petition should not be enforced.

Going to court

You will need to be aware of all the possible legal issues that may arise and how to address these at Court either via your representation of yourself. If you plan on challenging the petition, you will need to prepare for the hearing, your arguments and be ready to negotiate.

Talk to the experts

I have over 32 years of supporting individuals and businesses in financial difficulty and debt dilemmas. If you are issued with a Statutory Demand or Bankruptcy Petition for monies owed to a Creditor make sure to seek expert and bespoke legal advice every step of the way to ensure you make the right choices and go down the route most appropriate for you. If you are not sure of your options, please call me on 0330 236 9930, 0330 236 9938 or 07961 116321. All conversations will be in strict confidence. You can also email me vee@navigatebr.com. Our first conversation is complimentary.

This article is for information and interest only. It is not a substitute for full professional advice, which will take in to account the specific and individual circumstances. Navigate Business Recovery Limited cannot accept any responsibility for any loss arising as a result of any person or organisation acting or refraining from acting on any information.