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Insolvency Proceedings – This action is a powerful alternative to the issue of a claim. It is costly and if successful may result in the unsecured creditor receiving nothing. It can only be used where there is no dispute and the value of debt including contractual interest or late payment interest and compensation is above the minimum level of £750. If the value of debt is high and there is clearly no dispute, Insolvency action maybe the appropriate first step. For values below £750 a claim will have to be issued.
Winding up petition
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Applies to a company rather than an individual.
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After the winding up the company will cease to exist.
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It is possible all the creditors will not be paid in full.
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The debt must clearly not be in dispute.
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The minimum value for this action is £750.
Bankruptcy Petition
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Applies to a person or a general partnership.
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If general partnership, all partners are made bankrupt.
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Assets are sold and the proceeds paid to the creditors.
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Each creditor gets a percentage of what their owed.
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The debt must clearly not be in dispute.
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The minimum value for this action is £750.
Important – Just because you issue the petition this does not mean you have priority over any money that becomes available. If there are other supporting creditors to the petition they may take control, especially once it has been advertised.
Important: Please contact us for further information, other costs are involved.
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Company Winding Up and Bankruptcy
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Court
Fee
(£)
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To issue a petition to wind up a
company which owes you money.
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To issue a bankruptcy petition against
someone who owes you money (creditor’s
petition).
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