Where the debtor is an individual (incl sole trader or an unicorporated partnership) and is within the English or Welsh jurisdiction, pre-action protocol is mandatory before issuing proceedings.
A letter of demand gives warning you are about to issue proceedings against debtor. A letter of demand encourages a debtor to pay within the prescribed period. Failing to issue a letter of demand may well impact on recovery of expenses.
Where the debtor is not an individual, a shortened demand can be issued to establish apparent insolvency (inabilty to pay sums as they fall due) for commencing insolvency proceedings.
Before a creditor can apply to petition for bankruptcy (England), sequestration (Scotland) or the appointment of a liquidator they must serve a statutory demand on the debtor in a prescribed form.
A winding-up petition will be lodged with either the County Court or the High Court in England or the sheriff court or Court of Session in Scotland, dependent on the paid up share capital and registered office address, seeking the appointment of a liquidator.
To petition for an individual debtor to be sequestrated (declared bankrupt), various requirements must be fulfilled, subject to the debtor not being subject to a DRO or an IVA.
To petition for an individual debtor to be sequestrated (declared bankrupt), various requirements must be fulfilled, subject to the debtor not being subject to a Debt Arrangement Scheme (DAS), a Trust Deed or a Moratorium.
The content of this website is for general information only and should not be relied upon. It is not intended to be construed as legal advice and should not be treated as a substitute for specific advice.