Bankruptcy Proceedings (Debts £750.00 +) (Individual)
The first step would be to serve a Statutory Demand on the debtor. Once served, the debtor would have 21 days to respond. This is not strictly a method of debt recovery although as a Statutory Demand is the first step of bankruptcy proceedings, it may encourage payment.
If no response is received to the Demand, you would be entitled to issue a Bankruptcy Petition against the debtor. Once the Petition is filed at Court, a hearing date would be listed. The debtor would be informed of the proceedings and could pay the balance due before the hearing in order to avoid bankruptcy.
The choice is yours as to how far we go with these proceedings in that we could serve a Statutory Demand on the debtor and take no further action whether a response was received or not. You would not have to proceed with a Bankruptcy Petition if you did not wish to do so.
Winding Up Proceedings (Debts £750.00 +) (Limited Company)
It is good practice to serve a Statutory Demand on the debtor company before issuing a Winding Up Petition (although this is not always necessary). Once served, the company would have 21 days to respond. This is not strictly a method of debt recovery although as a Statutory Demand is the first step of winding up proceedings, it may encourage payment.
If no response is received to the Demand, you would be entitled to issue a Winding Up Petition against the company. Once the Petition is filed at Court, a hearing date would be listed and the matter would be advertised in the London Gazette. The company would be informed of the proceedings and could pay the balance due before the hearing in order to avoid being wound up.
The choice is yours as to how far we go with these proceedings in that we could serve a Statutory Demand on the company and take no further action whether a response was received or not. You would not have to proceed with a Winding Up Petition if it did not wish to do so.