INSOLVENCY & LAW
Recovery
Debt Recovery
Statutory Demands and Formal Demands
Does a company owe you £750 or more (the threshold is £5,000 or more for individuals)?
Call 020 7504 1300 1300 or email info@insolvencyandlaw.co.uk to schedule a free consultation with a debt recovery specialist.
You should consider serving a Statutory Demand if the debt is undisputed. If the debtor fails to agree payment terms within 18 days of receiving your Statutory Demand, you can initiate proceedings to have:
- an individual declared Bankrupt; or
- a company wound up and placed into Compulsory Liquidation.
If Compulsory Liquidation is the sole objective, another option would be to serve the debtor company .with a Formal Demand that:
- outlines why the debt is owed
- confirms the amount of the debt
- threatens winding-up proceedings unless payment is made within 18 days
Winding-up Petitions
If the debt remains unpaid after 18 days, you may petition for a Court Order to wind up the debtor company. A Winding-up Petition indicates the start of insolvency proceedings that will lead to the company entering Compulsory Liquidation.
Winding-up proceedings can be very stressful for the director(s) of an insolvent company. Sometimes, these negotiations are the final opportunity to save their business.
At this stage, a pragmatic director may consider paying the debt to prevent the company falling into Compulsory Liquidation. However, using a Winding-up Petition as a debt-collection tool is strictly prohibited, so these circumstances are rare.
If available, proceeds from the sale of the insolvent company’s assets will be shared proportionately among creditors at the end of the Compulsory Liquidation process.
Are you considering court action to recover a longstanding debt? Call 020 7504 1300 1300 or email info@insolvencyandlaw.co.uk and speak to a recoveries expert about Debt Assignment and insolvency procedures such as liquidation and administration.
Issuing County Court and money claims
Alternatively, you may apply to a County Court to demand payment of the overdue debt - but you must first serve the company / individual with a Pre-action Letter.
A Pre-action Letter is a formal notice that explains the circumstances surrounding the debt and requests payment within 14 days. If the defendant fails to pay or reach an agreement to pay, a County Court will issue you (the claimant) with a N1 Claim form to complete.
Court fees are paid in advance and cost between £35 and £10,000, depending on the value of the claim. Once payment has been made and the N1 Claim form returned, the court will process the claim and issue a County Court Notice.
The defendant has 14 days to acknowledge receipt of the County Court Notice. A defendant who fails to respond in time is deemed to have accepted the debt, which could result in them receiving a County Court Judgment (CCJ).
Struggling to collect an overdue debt of £5,000 or more? Call 020 7504 1300 1300 or email info@insolvencyandlaw.co.ukand speak to a recovery professional about Debt Assignment.
Debt Assignment
Insolvency & Law is a UK-based consultancy providing debt recovery services since 2009. We help creditors and investors recover sizeable sums and achieve favourable outcomes in insolvencies and court actions.
Our strategic, structured, and results-driven Debt Assignment service is the perfect solution if you have concerns about a debtor who is resistant, unresponsive, or showing signs of financial distress.
If the value of your debt exceeds £5,000, Insolvency & Law will take full responsibility, chase defendants through the courts, and bear all losses, so even if our court actions backfire you're insulated from any adverse costs.
Individuals and smaller companies tend to avoid Issuing County Court and money claims because:
- costs can easily become significant over 12 months and escalate further if things go wrong
- there's no guarantee of a favourable court judgment, especially if the defendant claims to have an unrelated dispute with you (the claimant)
In contrast, at our own risk and for a much lower cost, we’ll engage solicitors, barristers, or other experts during the proceedings and enforce recovery of the debts legally assigned to us.
Debt Assignment is a powerful legal remedy that allows you to transfer ownership of debts to a third party. But it’s crucial that you act swiftly to recover the debt because the director(s) of the debtor company could be:
- paying other creditors
- exposing you to unnecessary loss
- using your credit terms as an unsecured, interest-free loan
- transferring assets into a new company, leaving you and other creditors to expire with the old business
Call Insolvency & Law on 020 7504 1300 or email info@insolvencyandlaw.co.uk and speak to a professional who’ll start the recovery process within 24 hours of you assigning a debt to Insolvency & Law.
https://www.gov.uk/government/publications/form-n1-claim-form-cpr-part-7
Who We Are...
Insolvency & Law is a UK-based insolvency and debt recovery firm that has developed cost-effective debt solutions since 2009. Our strategies and services help individuals, company directors, and business owners who seek guidance and advice.
Why Choose Us?
Innovative Strategies: We'll develop a bespoke solution to help protect your assets and rescue your business, depending on the situation.
Integrity and Transparency: Every case is managed with care and empathy. Furthermore, you're under no obligation to use our services after receiving the free consultation session. You may engage Insolvency & Law to serve your interests or use the information we share to represent yourself.
Call 020 7504 1300 or email info@insolvencyandlaw.co.uk today for a free consultation.