Legal issues
The debt must satisfy the statutory requirements and the correct evidence must support the petition. Breathing Space protection can temporarily prevent a creditor from petitioning, and the creditor must also carry out searches for other bankruptcy petitions.
A disputed debt should not be pushed through bankruptcy merely to avoid determining the merits in ordinary civil proceedings.
Evidence that matters
Relevant material includes the debt agreement or judgment, statutory demand, certificate of service, enforcement officer or bailiff evidence where relied on, debtor address information, petition searches and the full payment and dispute history.
Reasonable lines of enquiry
Check whether the debtor is protected by Breathing Space, whether other petitions exist, whether the debt remains undisputed and above the threshold, and whether the debtor appears to have assets from which a bankruptcy estate could realistically produce a dividend.
What happens next
The creditor establishes the insolvency ground, completes required searches and petition evidence, presents the petition to the appropriate court and serves it in accordance with the procedure. The court then determines whether to make a bankruptcy order.
Immediate steps
Before paying the petition deposit, verify the threshold, service history, debtor location, other petitions and likely asset position. Bankruptcy can be disproportionate where another enforcement method is more targeted.
What should you send us?
Send the contract or judgment, statutory demand and service evidence, enforcement documents, debtor address details, payment history and all dispute correspondence.