bankruptcy limit

[IRM]

i was under the impression that the bankruptcy limit for a debt is £750

is this the case? as i need to put some heavy pressure on a company to pay up after promising to do so before christmas and this may be the threat or promise i need

ie don't pay up or i'll declare you bankrupt

only done one job so don't really give shit if i up set them

[Smartie]

think the point is that it will cost you around that much to do it!

[justinp1]

IRM said:

i was under the impression that the bankruptcy limit for a debt is £750

is this the case? as i need to put some heavy pressure on a company to pay up after promising to do so before christmas and this may be the threat or promise i need

ie don't pay up or i'll declare you bankrupt

only done one job so don't really give shit if i up set them

If it is a company they cannot become bankrupt.

The best way forward is to send them a letter headed 'Final notice of intended legal action', and give them seven days to pay the balance in full or you will take immediate legal action to recover the money.

You could also warn them of the Late Payment of Commercial Debts (Interest) Act. If you have invoiced correctly you are entitled to £40 compensation if the amount is less than £1000, plus interest at 8% above the base rate.

You can do both. I would add the late payment charge if you ar enot bothered working with them again. They will most likelt respond to a correctly headed 'Final Notice'. I have done about 5 or six of these over the last few years and no-one yet has called my bluff.

If you need to take action, it should cost you about £30 and you can do it online at Money Claim Online from the court service. £30 it should cost you or a little more dependant on the size of the debt. This cost you also claim back in the case, so in effect it will cost you nothing. If they dont respond the court judges in your favour and a CCJ is filed. If they still do not pay you can ask the court to authorise bailiffs.

You will get paid in the end this way.

[anonymous-user]

justinp1 said:

You will get paid in the end this way.

Only if the person/company you are claiming against actually has any cash or assets to seize...

[justinp1]

Davros79 said:

justinp1 said:

You will get paid in the end this way.

Only if the person/company you are claiming against actually has any cash or assets to seize...

Of course... however if the company is still running, they will have *something*.

If they are not running then the OP is screwed anyway!

[Lurking Lawyer]

justinp1 said:

If it is a company they cannot become bankrupt.

The best way forward is to send them a letter headed 'Final notice of intended legal action', and give them seven days to pay the balance in full or you will take immediate legal action to recover the money.

Bankruptcy applies to individuals. There is however an analogous insolvency process for companies - applying to wind them up. To all intents and purposes, they're the same thing.

A lot of serial debtors don't take threats of county court proceedings seriously, threats of penal interest and compensation under the Late Payment of Commercial Debts Act or not. Sending them a statutory demand - the precursor to bankruptcy or insolvency proceedings - sometimes elicits more a response, on the other hand.

And yes, the limit for petitioning to make someone bankrupt or to wind up a company is £750. Insolvency proceedings should not generally be used as a means of debt collection so should only be used where there is no genuine dispute over the debt in question.

[Piglet]

The slight (although probably academic) danger with a petition is that IIRC once it's lodged other creditors can jump on the bandwagon and then the person who lodged it can't withdraw it.

The company then becomes insolvent and 9 times out of 10 there is nothing left for the little creditors!

[IRM]

ok

been down the ccj route with others at one time i seemed to have a hot line to northampton

the online facility being excellent

i just get fed up of not being paid for two years and short of sending around a few herberts
to persuade them felt the heaviest legal fist possible should be used

[steviebee]

IRM said:

short of sending around a few herberts
to persuade them felt the heaviest legal fist possible should be used

Not an option to be wholly to be overlooked. There's plenty of "organisations" you can sell the debt to who will then take what ever means required to extract the funds. Tread carefully though!

[justinp1]

steviebee said:

IRM said:

short of sending around a few herberts
to persuade them felt the heaviest legal fist possible should be used

Not an option to be wholly to be overlooked. There's plenty of "organisations" you can sell the debt to who will then take what ever means required to extract the funds. Tread carefully though!

Agreed.

I have investigated the same route with them. They apply the same pressure of letter writing and/or visits pre trial for a minimum amount and/or fixed percentage. They will also go to court for you too for another upfront fee and recover after court again.

IMHO they may or may not work. If they do work you could have saved yourself money by doing the papers yourself if you feel confident and getting the court to instruct bailiffs *for the 3% of cases that go to trial*. However if they ignore even that and still cant pay then all you have done is thrown good money after bad - as the debt company will still want paying.