Defending Your Bankruptcy – Wll Solicitors

By Author: WLL Solicitors
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A bankruptcy order can be made for various reasons, including:
• You can’t pay what you owe and want to declare yourself bankrupt.
• Your creditors apply to make you bankrupt because you owe them £5000 or more.
• An insolvency practitioner makes you bankrupt because you’ve broken the terms of an individual voluntary arrangement (IVA).
An Individual Voluntary Arrangement (IVA) is an agreement with your creditors to pay all or part of your debts, whereby you agree to make regular payments to an insolvency practitioner, who then passes on this money to your creditors.
The individual petitioning for bankruptcy, (the “petitioning creditor”), is required to personally serve a statutory demand and thereafter a bankruptcy petition.
The person defending bankruptcy will be given a court date stated on the bankruptcy petition allowing them to attend court to defend the bankruptcy proceedings. It is advisable to engage an expert bankruptcy solicitor to defend any bankruptcy proceedings as technical defences may be available to defend the petition, and a bankruptcy solicitor can also try ...
... and negotiate the debt or ask for time to pay. A large number of petitions are issued by the HMRC who are sometimes reluctant to agree to time to pay proposals, however they are more amenable to enter into such arrangements when dealing with expert bankruptcy solicitors.
Other defences to bankruptcy petitions include disputing debt and bringing a counter-claim or cross claim against your petitioning creditor, if that option is available to you. These are matters which can and should be properly discussed with an expert bankruptcy solicitor in order to find out as to whether there are realistic prospects of successfully defending any bankruptcy petition or whether it is best to negotiate and pay off the petitioning creditor or perhaps enter into a time to pay proposal.
Bankruptcy can result in your bank accounts being frozen, you been unable to act as a director and trade.
There is no substitute for taking expert bankruptcy legal advice as soon as possible to allow you to make well-informed decisions, including decisions as to whether the petition should be defended or whether payment should be offered and made within a certain timescale.
For a no obligation discussion give our expert debt and bankruptcy solicitors a call. We can help you if you are at threat of being declared bankrupt as we are experts in defending bankruptcy claims.

WLL Solicitors are a niche commercial litigation practice situated in the heart of the Legal District in London, our specialism being in resolving Bankruptcy & Insolvency matters.