Bankruptcy petitions are presented against people who are unable to repay a debt of over £750.00 when it is demanded from them.
Bankruptcy petitions can be, rightly or wrongly, issued against anyone and not everyone who is subject to a bankruptcy petition deserves to be threatened with them. Bankruptcy carries a stigma and can be devastating to a person’s career and also put their home at risk.
At Abacus, we regularly deal with clients who have had bankruptcy proceedings issued against them and we are able to provide help and assistance to those clients who find themselves in this position.
Prior to the presentation of a bankruptcy petition a petitioning creditor will send a Statutory Demand to you. This will give the Debtor notice of what the Creditor claims and is the first opportunity for you to negotiate with the Creditor and seek to resolve the situation. If you believe you have been wrongly served with the Statutory Demand you have 18 days in which to apply to Court to have the Demand set aside. If you genuinely dispute the debt it is important that you make this application to avoid a bankruptcy petition being brought. If no application is made, the Creditor is free to present a bankruptcy petition to the Court after 21 days.
Abacus Solicitors’ insolvency department are able to deal with an application to set aside a Statutory Demand on your behalf and ensure someone attends the Court hearing to represent you.
If you have missed this time limit don’t panic…
You can still defend a bankruptcy petition but it is extremely important that you act quickly.
The team at Abacus regularly deal with clients who do not dispute that the debt is owed and have assets and/or funds in which to repay the debt, however do not know the correct way in which to approach the Creditor.
Once you are declared bankrupt an Official Receiver or a Trustee in Bankruptcy is appointed and they have control over all your assets. They also have the power to reverse previous transactions concerning your property. This makes it very difficult for you to raise finance through the sale of your assets e.g. house/car, or obtain a loan to pay the debt as purchasers and lenders will be concerned that the Trustee may take back the asset or disregard their security for the loan.
Our Debt & Insolvency solicitors can assist you with various aspects of the bankruptcy process as follows:
- Preventing a Bankruptcy Petition
- Dealing with Statutory Demands
- Presenting your own bankruptcy petition
- Defending a bankruptcy petition
- Annulling a bankruptcy order
Please contact our Debt & Insolvency specialists on 0161 833 0044 or e-mail firstname.lastname@example.org