Insolvency, winding up, bankruptcy, creditors petition, statutory demand
If a business cannot pay its debts as and when they fall due, then it is technically insolvent. If you are owed money and there is no dispute as to the amount owed (or the reasons) then you may be able to take the first step to winding a company up by issuing a statutory demand.
Statutory demand v Court
A statutory demand is a potent weapon requiring a response in 21 days - making it much quicker than regular Court proceedings.
Equally, if you have been served with a statutory demand then you only have a short timeframe to take steps to avoid your company being wound up.
The benefit of a statutory demand is that it is just between you and the debtor company. If you sue a company then the whole world can find out about that case as justice is administered in the public eye, and then anyone else owed money can come out of the woodwork and also try to recover funds. But for 21 days, a statutory demand is just between you and the debtor company.
What is a creditors petition?
A creditors petition allows you to join in to a winding up process that has already been started. This limits the need to have to go through a lot of the preliminary steps that have already been completed saving you time and money.
Here, at Ricketts & Associates, whether you have been served with winding up proceedings or are owed money, we can advise and assist you.
Contact Ricketts & Associates to find out how we can help you