MKB Law’s Senior Legal Executive, James McIlveen, provides specialist assistance in this area and works with clients to ensure prompt Insolvency action. We have also had recent occasion to commence insolvency proceedings in both Scotland and England, all with notable success.

Statutory Demands – are the first stage of the insolvency process, the liquidated debt limit must exceed £5,000 for individuals and £750 for company liabilities.

Individual Debtors –  the format will vary subject to whether the creditor holds a judgment or not. Application is made under the Insolvency Order (NI) and must be for a liquidated amount.

Corporate Debtors – the statutory demand is applicable when the limited company is unable to pay its debts and should therefore be wound up by the Court and placed into liquidation.

Partnerships – the stat demand is applicable when the entity is unable to pay its debts and should therefore be wound up by the Court and placed into liquidation.

The documentation is drafted by the creditor’s solicitor and brought to the attention of the debtor directly. It may also be subject to advertising in the local press. The debtor has 21 days to pay, secure or compound for payment of the liability, and 18 days upon which to apply to the Court for the demand to be set aside.

Following the expiration of a Statutory Demand, a Winding up Petition or Petition for Bankruptcy is drafted by the creditor’s solicitor and must be personally served. In the case of a registered company the Petition must also be advertised. It is considered to be a class action, and in the event of failure to pay, secure or compound, must be processed to conclusion with the debtor’s adjudication in bankruptcy or company liquidation.

Insolvency is a quick and efficient method to obtain an early insolvency hearing and it imposes pressure on a debtor to prioritise payment or to compound with the creditor. The creditor may revert to the judgment route if no payment is derived from the Statutory Demand. The process may open prior fraudulent transactions and the commencement of misfeasance proceedings against debtors. Any subsequent Petition is a matter of public record and may be advertised.

Similarly, if you are in a position whereby the above has been served on you and you wish to dispute this, please contact us to discuss the options available to you. We can advise and assist with obtaining a stay of advertising or an injunction.

MKB Law’s Debt Recovery and Insolvency Solicitors pride themselves on providing clients with a service that is highly efficient, proactive and outcome-driven. Our team have many years of experience handling volume debt and insolvency cases that are the subject of dispute and complex in nature.

To make an enquiry with our Debt Recovery & Insolvency team, you can complete our online form.

Contact our team today on: 028 9024 2450 or email us: info@mkblaw.co.uk