What you can Expect from Us
We are serious about fighting for justice and have over 20 years experience in the legal profession.
We pre-vet your case free of charge within 2 hours whenever possible and without obligation.
If you have a good case we quickly pass it to a senior barrister who will consider it for no win no fee. A small administrative fee is only payable when we seek a barrister's opinion. If the barrister agrees, he will take on the case on a no win no fee basis.
We can also insure you against paying your opponent's legal costs. Our Panel barristers and solicitors don't just run cases - they win cases and it is they and not you who take the risk.
How can I be made bankrupt and what then happens?
A debtor (i.e. the person in debt) can apply for his own bankruptcy. You complete an Application, a Statement of Means and you pay the not insubstantial fee and deposit (unless you are exempt from fees). You will be given an appointment to appear before the District Judge at the County Court and if the Order is made, you will be summoned to attend at the Official Receiver's Office for a meeting with him to discuss your financial situation and how the bankruptcy will work. You will be informed that you cannot act as a Director of a Limited Company whilst bankrupt. You are very restricted as to what credit you can take, and you banking arrangements will be more restrictive. It will drastically affect your credit record/scoring. But generally you will be discharged a year later, your previous debts generally having been wiped out. there are many other issues that arise but this is a general overview of what bankruptcy means.
If you don't petition for your own bankruptcy, one of your creditors can do so if the debt is more than £750. If they do petition, they will generally precede this with issuing a demand for payment, known
otherwise as a Statutory Demand. This gives the debtor one last chance to pay or come to some financial arrangement.
Bankruptcy will wipe out most debts of the debtor and allows him, to a certain extent, to make a fresh start.
What is a voluntary arrangement?
This is almost what it sounds like. An individual or a Company can enter into either an Individual Voluntary Arrangement with creditors or a Company voluntary Arrangement. This avoids liquidation or personal bankruptcy and offers the creditors something rather than, probably, nothing. It might provide for a proportion of the debt to be paid, or the debt to be paid over a lengthier period of time.
The process begins when the Directors or individual put a proposal to the nominee (a licensed insolvency practitioner.) The nominee puts a report to the Court. A meeting of creditors is then convened. If approved in the manner prescribed, then the VA is in effect. In the case of an IVA, there may be an interim order initially. The interim order provides the debtor with certain protection pending the IVA being ultimately approved.
In order to approve an IVA at the creditors’ meeting, a majority of three quarters or more in value of creditors present in person or by proxy and voting is needed. A secured creditor may vote in respect of any part of the debt which is unsecured.
What is "winding up" or "liquidation"?
An insolvent Company can be subject to a creditors’ winding up or a members’ voluntary winding up. A compulsory winding up is where a creditor issues a petition for winding up the company on the basis, for example, that the company is unable to meet its debts. Section 122(1) sets out the grounds for a winding up order. This includes where the company has passed a special resolution that it be wound up by the Court. Also it includes where the company is unable to pay its debts. There is then a catch all where the Court is of the opinion that it is “just and equitable” that the company is wound up.
What is receiver/receivership?
A Receiver is a person who receives or controls property on behalf of others and will normally have the power to sell assets and distribute the proceeds. There is a common misconception that receivership is synonymous with liquidation; this is not the case.
Before the Enterprise Act 2002, the appointment of a Receiver was the favoured option of a secured creditor of a company where the company was in breach of a loan agreement, usually known as a debenture. The lender will usually be a bank or other financial institution. After the Act came into force on the 15th September 2003, the lender will usually have to now appoint an Administrator. It should also be noted that there are various categories of Receiver including an Administrative Receiver; a LPA (Law of Property Act) Receiver; a Court appointed Receiver.
When a company is in trouble, it generally has four options:
a) Immediate winding up;
b) Return to profit;
c) Invitation to the debenture holder to appoint an administrative Receiver;
d) Bring in an Administrator to try and rescue the Company.