Help with bankruptcy petition - can i defend?

[mattcarr41]

Hi everyone

 

new to forum and couldn't find appropriate forum to post

 

I was until recently a sole trader and unfortunately due to many factors, I had to close that business and start again, only this time as a director of a limited company.

 

the new company is doing very well, and I am very optimistic about the future.

 

problem I have at the moment is that I have one particular supplier (based in Holland) who are chasing me for payment of invoices for the sole trader business.

 

I have been in communication regularly with their uk based solicitors (who I believe are actually acting on behalf of euler hermes credit insurance group). I have made various offers to make payment in full over a period of time but each offer has been refused.

 

the debt is £75,000 circa, and I have always maintained the intention to repay, but couldn't afford to make large payments to begin with as I have had to wait until the new business becomes more profitable before I can afford to repay the debt - on the offer i made the debt would have been repaid within 12 months.

 

I do not own my own home or car (or anything else as substantial as these) and my only asset is the new business itself.

 

after receiving a stat demand a few months ago, I have now received a phone call from someone who wants to serve a bankruptcy petition against me

 

is there a way I can defend the bankruptcy as I would prefer not to go bankrupt - I have been advised by an insolvency practitioner that I would be best to simply sign my shares in the new business to someone I trust and simply make myself bankrupt, but I really want to avoid this type of action as much as possible

 

any help would be very much appreciated

[citizenB]

Did you not apply to have the stat demand set aside ?

 

I think you will be able to defend the petition, but not sure how. Will send out S.O.S. for you.

 

I have also relocated your thread to the correct forum (legal issues). You do not have to do anything, it is purely administrative.

Edited July 15, 2013 by citizenB

[citizenB]

http://www.incasso.co.uk/articles/105/bankruptcy-petitions-in-a-nutshell

 

 

 

A bankruptcy petition may be dismissed if the debtor shows that the petitioning creditor unreasonably refused an offer to settle the debt on which the petition is based. In assessing reasonableness the court consider the reaction of a hypothetical reasonable creditor to the offer. In Ross and anor v HM Revenue and Customs [2010] EWHC 12 (ch), the High Court ruled on the extent to which the court considers the particular circumstances of each case when making that assessment and held that the court could take into account the main characteristics of the petitioning creditor in question and judge the creditor's refusal of the offer in the light of the background circumstances of the bankruptcy petition and the underlying debt.

[mattcarr41]

thanks citizen

 

I failed to apply to set aside the stat demand as I was negotiating with the company and their solicitors directly (my own fault I know)

 

I have 2 other creditors who are pursuing and I am looking into the possibility of setting up an iva to reduce the overall amount owed and to install a monthly amount to be paid sooner rather than later

 

can you recommend anyone who can help with this?

[citizenB]

Business Debtline

Debt advice for the self-employed and small businesses

Tel: 0800 197 6026

www.bdl.org.uk

 

http://www.bdl.org.uk/

 

 

National Debtline now have a Business Debtline, all the details are above. They might be able to help.