Getting a Bankruptcy Order is a method of recovering unpaid debts from insolvent individuals, including sole traders. While insolvency should always be a last resort, obtaining a Bankruptcy Order may be a business or individual’s best chance of retrieving some of the monies outstanding.
At Saunders Law, we are a partner-led niche litigation law firm based in Central London. We assist individual and business clients with a wide range of contentious legal matters.
We specialise in high value debt recovery and insolvency for commercial clients, from small to medium enterprises and high net worth individuals to large regional, national and international corporations. As a provider of bespoke legal advice and representation, our particular area of expertise lies in high value insolvency work, usually involving debts in excess of £100,000.
Find out more about the firm, its teams and its typical work by taking a look at our clients.
Speak to our bankruptcy solicitors in London
For expert assistance with Bankruptcy Petitions and Orders against individuals and other advice about recovering business debts, contact Saunders Law today for a free, no obligation initial discussion of how we may be able to help.
Call us on 02076324300 or make an enquiry online.
Issuing Bankruptcy Petitions during Covid-19
Businesses and individuals may still issue Statutory Demands and Bankruptcy Petitions against individuals in the usual way. This includes insolvency proceedings against sole traders.
Temporary restrictions in relation to the issue of Statutory Demands and Winding Up Petitions against companies during Covid-19 were in place until 30 September 2021, with some lighter restrictions in place until 31 March 2022. See our Winding Up Orders & Petitions page for further information.
Specialist advice about Bankruptcy Petitions in London
Bankruptcy Petitions can be used by creditors where a debtor owes more than £5,000 and they cannot repay. This includes where a debtor previously entered into an Individual Voluntary Arrangement (IVA), the terms of which they have breached.
Bankruptcy proceedings tend to be a final resort for creditors, usually where the debtor will not engage in meaningful settlement discussions and/or where upon investigation it becomes clear that the state of the debtor’s finances means repayment is highly unlikely.
The effect of a Bankruptcy Order is that an individual’s assets can be seized and distributed among their creditors. So, even where the debtor’s income and expenditure suggests that repayment is impossible, pursuing bankruptcy may still allow the creditor to recoup some monies.
However, creditors should also consider whether alternative debt recovery options exist and whether these may be more appropriate in the circumstances, such as securing an unsecured debt over the debtor’s property by way of a Charging Order.
Our insolvency specialists can provide carefully tailored advice to help creditors make informed decisions about how to move forwards, as well as handling the bankruptcy proceedings on their behalf.
How our insolvency solicitors can help
General advice about debt recovery and insolvency
Insolvency is usually a last resort where there are few or no other debt recovery options available to the creditor. Our specialist lawyers help businesses and individuals explore all the available options and help them take swift, cost-effective action designed to help them maximise their recovery.
Visit our High Value Debt Recovery page for more information.
The most effective way to commence insolvency proceedings is to first issue a Statutory Demand – a formal legal document that demands repayment of the debt within a specified time frame.
If the debtor does not respond to the Statutory Demand within 21 days or cannot enter into meaningful settlement negotiations, we can provide practical, commercially-minded advice about issuing a Bankruptcy Petition.
For more information, visit our Statutory Demands page.
The Bankruptcy Petition starts the formal court process of making an individual bankrupt.
We can handle the entire petitioning process on behalf of individual and business creditors, completing all the necessary legal documentation to the highest degree of accuracy and putting them in the strongest possible position moving forwards.
We have experience handling Petitions in an array of courts, including the High Court and local county courts.
Our service includes:
- Conducting bankruptcy searches to check for any other Bankruptcy Petitions.
- Completing the required legal documentation.
- Submitting the Petition to the relevant court.
- Serving the Bankruptcy Petition upon the debtor and completing a Certificate of Service.
- Preparing for the Bankruptcy hearing and representing clients during the proceedings.
Dealing with defended bankruptcy proceedings
If a debtor disputes a debt or has another issue, such as concerns about the validity of a Statutory Demand, they may defend a Bankruptcy Petition or apply for an injunction to prevent the creditor from taking certain action, such as presenting a Bankruptcy Petition.
The debtor may also seek to enter into an Individual Voluntary Arrangement even after bankruptcy proceedings have commenced.
Our insolvency lawyers can advise creditors through defended or disputed bankruptcy proceedings. We regularly handle complex insolvency matters, including counter-claims and contractual disputes often involving debts in excess of £100,000.
We can also assist individuals who have been served with a Statutory Demand or Bankruptcy Petition.
The effect of the Bankruptcy Order is that the debtor’s assets may be sold and the proceeds distributed among their creditors. The bankruptcy will likely be handled by an Official Receiver and/or Insolvency Practitioner (referred to as the Trustee in Bankruptcy).
We can represent creditors further to the grant of a Bankruptcy Order, including providing advice about participating in the bankruptcy and submitting proofs of debt.
Why Saunders Law is the smart choice for Bankruptcy Petitions & Orders
Over 40 years’ experience
Our team of dedicated commercial litigation solicitors has over 40 years’ experience handling complex and high value debt recovery and insolvency matters.
We combine our wealth of technical legal expertise with a pragmatic business-minded approach to guide our clients through the process as straightforwardly as possible. Our primary aim is always to help clients maximise their recovery, bearing in mind the commercial realities of the matter and the cost-effectiveness of taking certain courses of action.
Independently recognised expertise
We have been independently recognised for our market-leading expertise by prestigious client guides, the Legal 500 and Chambers & Partners. We are nationally recognised for our skills with our clients coming to us for advice and representation from across the UK and abroad.
A bespoke service
We specialise in helping businesses and individuals find strategic solutions to a wide range of debt recovery issues, from breaches of contract to rent arrears recovery to complex matters involving regulated industries such as financial services.
We carefully tailor our advice to suit each client’s individual needs with a strong focus on amicable dispute resolution wherever possible.
Every solution is customised with the unique factors of the case at heart, helping clients make the best possible recovery in the most cost-effective way.
The highest standards of client care
The quality of care we provide to our clients is just as important as the results we achieve. Our bankruptcy lawyers work closely with clients, providing a supportive shoulder to lean on and working proactively to find a solution as swiftly as possible.
Following their initial enquiry, our clients can expect a call back the same working day. We also make ourselves available to take calls whenever required and provide regular updates throughout each client’s case.
We can offer a free consultation for new clients to seek initial advice about the bankruptcy process, our fees and how we can help.
We are proud of the excellent client feedback we receive as a result of our welcoming and hands-on service.
We make it our policy to be completely upfront and open about fees. We work with our clients to help them establish a budget and the agreed scope of work we can achieve for that price so they can proceed with absolute certainty. For more information about our fees, visit our pricing page.
Speak to our bankruptcy lawyers in London
For expert advice about making someone bankrupt, contact Saunders Law today for a free, no obligation initial discussion of how we may be able to help.