If you are a creditor seeking payment of an unpaid invoice and are pursuing an undisputed debt claim of at least £5,000 against an individual, then you have the right to present a bankruptcy petition to a court to recover what you are owed.
What is a bankruptcy petition?
A bankruptcy petition is a form of application to the court where you can apply for someone’s assets to be taken to be sold to pay any debt to you are due. By our expert Bankruptcy Specialist presenting a petition can be less complicated as it seems.
How to issue a Bankruptcy petition?
The following must be done when issuing a bankruptcy petition:
When making someone bankrupt you must be owed at least £5,000 or a share of debts that total at least £5,000 and to do so you must provide evidence to the court that you are owed this money. This can be proven by if you have issued a statutory demand to the debtor and can confirm this by filing the in a service of the N215 form.
Additionally, you can get bailiff’s or sheriff’s statement showing that the bailiff or sheriff was not able to recover enough asserts to pay the debt or if you have a court judgement for the money owed.
A bankruptcy petition must be served personally on the debtor at least 14 days before the date of the hearing. If prompt personal service cannot be effected because the debtor is keeping out of the way or for some other reason, you can apply to the court for an order for substituted service (which may be by posting or leaving the document at a given address or by advertisement). A certificate of service must be filed with the court as soon as practical after service and in any event 5 business days before the hearing.
What happens when serving a bankruptcy petition?
The bankruptcy petition must be served personally on the debtor at least 14 days before the date of the hearing and a Certificate of Service or Statement in Support of Substituted Service is required as proof of service.
What happens at the bankruptcy petition hearing?
After service of the bankruptcy petition, the Court is involved and a date will be set for a bankruptcy petition hearing.
At the hearing, you as the creditor that must attend or have legal representation in their stead. Other creditors will also have a right to attend the bankruptcy petition hearing (provided that a list of creditors is provided to the Court in advance).
If the debtor intends to oppose the making of a bankruptcy order, they must file a witness statement in opposition in court not less than five business days before the date of the hearing of the petition (rule 4.18(1), Insolvency Rules). A copy of the evidence must also be sent to the petitioning creditor as soon as reasonably practicable (rule 4.18(2), Insolvency Rules).
As a creditor why should you instruct us?
We are lawyers that specialise in recovering unpaid debts from individuals or companies so we know the best way to get your unpaid debts paid up quickly. This may involve Insolvency or Litigation proceedings.
To date, we have a 100% success rate and all of the petitions we have issued have been resolved in our client’s favour. This has also meant that the petitioned company or individual has paid our fees. Luckily for our clients this means instructing us to pursue their bad debts has ultimately recovered the sums owed plus interest with a refund of their legal costs.
Meet our Expert Bankruptcy Lawyers
We specialise in personal insolvency dispute litigation. We’re a specialist City of London law firm made up of Solicitors & Barristers. We are based in the legal heart of London in Middle Temple next to the Royal Courts of Justice (where the Central London County Court (Bankruptcy) is based). We’re experts in dealing with matters surrounding personal insolvency including issuing and setting aside statutory demands, issuing and opposing bankruptcy petitions; and managing bankruptcy applications (including annulments).
Whilst we are based in London we provide national coverage across all Courts in England & Wales. We provide a quick no cost initial telephone case review to establish whether or not we can help you; just call one of our team on 02071830529