If your business has debts which have been unpaid over a specified period of time, it may be declared bankrupt and wound up.
When this happens, the company’s assets are sold off to create funds to pay your creditors in a process known as liquidation. Once this has been done, the company no longer exists and cannot trade. However, in many cases the assets do not amount to the debts owed, and there is a set hierarchy of which debts are prioritised over others.
Before this happens though, a written demand must be made, and you must be given 21 days to pay the outstanding debt. This debt must be unsecured and be over £750. If the debts remain unpaid, then proceedings can begin. Monarch Solicitors can assist in defending or approving the petition at court.
Contact our Specialist Solicitors:
If you would like to enquire for any of our services please complete our online contact form here or send an email to us at [email protected] and one of our solicitors shall call you back.
Alternatively, please call our specialist solicitors in Manchester on 0161 820 8888 for a no obligation discussion.
For more information regarding business bankruptcy, please click here for more information.
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