Our Commercial Debt Recovery Solicitors Enforce £220,000 Debt Payment Following Issuing of a Winding Up Notice
In this case, our Client was owed a debt of £220,000, a significant sum, which needed to be settled quickly. As commercial debt recovery solicitors, we have a number of business debt enforcement tools that we can use if a Letter before Action does not achieve the desired result. We served a 72 hour Winding Up Notice on the debtor. This resulted in the debtor paying the debt in full less than one week after receiving the notice. We also successfully obtained payment of our Client’s costs and interest in respect of the debt.
Why a Winding Up Notice?
The first stage of any commercial debt recovery is usually to send an official Solicitors Letter Before Action. This is a legal requirement. No legal action, be it the issue of business debt enforcement methods or the serving of Court Action, can take place without sending this letter to the debtor.
In most cases, a Letter Before Action has the desired effect, and the debt is usually settled soon afterwards. In some cases, however, further action is needed, even after Judgement has been made, and we call this enforcement. Click here for a full list of enforcement tools.
The main enforcement tools include: issuing a Statutory Demand and issuing Bankruptcy Proceedings. We assess each case on its merits and in this instance, we issued a Winding Up Notice. This is a procedure which applies to liquidate the Debtor Company, whereupon it’s assets will be distributed to its creditors, where the claim is over £750.
The issuing of a Winding up Notice is very often the last resort to get a company to pay its debts. Assuming the Statutory Demand has not been complied with, then the Winding Up Notice can be issued.
It is worth noting that a Winding up Petition is advertised in the London Gazette, where it will be seen by HMRC and the banks. At this stage, it is not unusual for a bank to freeze the company’s bank accounts in order to safeguard their money.
There are, as can be seen, a series of legal steps to go down. The decision to issue a Winding up Petition is also a finely judged business decision. It is based on the needs of our clients and what we judge the most likely outcome to be, using our experience as commercial recovery solicitors.
Contact Our Commercial Debt Recovery Solicitors for Help and Advice With Business Debt Enforcement
Our team of commercial debt recovery solicitors is highly experienced in all aspects of debt recovery. Click here to see some more of our case studies and testimonials.
If you need help recovering a debt, especially to enforce collection, please contact us or call us on 01922 616306 for a FREE initial discussion. Your enquiry will be treated in the strictest confidence.