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Alex J.
Alex J., Solicitor
Category: Law
Satisfied Customers: 3614
Experience:  Solicitors 2 years plus PQE
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I am a business creditor with a large amount of money owed

Resolved Question:

I am a business creditor with a large amount of money owed to me by my debtor. In response to my threat of enforcement the debtor has informally agreed (by e-mail) to pay by instalments, which I have agreed to. However, the debtor has not taken any steps to pay under this arrangement.
A third party has since threatened to enforce a costs order awarded (for a much smaller sum) in their favour against the same debtor. I do not want to lose any priority in this. Given that the debtor has thus far failed to comply with our arrangement should I commence my own action?
Submitted: 3 years ago.
Category: Law
Expert:  Alex J. replied 3 years ago.
Hi,

Thank you for your question and welcome.

My name is XXXXX XXXXX I will assist you.

Does the debtor dispute the debt?

Kind regards

AJ
Customer: replied 3 years ago.

No.

Expert:  Alex J. replied 3 years ago.
Hi,

Thank you.

If the debt is not disputed you can issue a Statutory demand. This has a 21 day penal notice and if the notice expires without payment in full you will then be entitled to issue insolvency proceedings.https://www.gov.uk/statutory-demands

As an unsecured creditor you dont have any priority and without a Judgment it is difficult to talk enforcement action. If the other creditor makes the debtor bankrupt you will join the line of unsecured creditors. Is the debtor an individual or company?

Kind regards

AJ
Customer: replied 3 years ago.

The debtor is an individual.

Expert:  Alex J. replied 3 years ago.
Hi

Thank you.

If you are aware that the debtor has assets e.g a house the best course of action you can take is demand security.

Ask the debtor to sign a a forbearance agreement. Whereby you agree to allow the continued installment payments and in return he will give you a charge on his property. Once you have security it does not matter what the unsecured creditors do.

The alternative is you seek a Judgment and then take enforcement action e.g the bailiffs or attachment of earnings, or you petition for the individuals bankruptcy.

Kind regards

AJ
Alex J., Solicitor
Category: Law
Satisfied Customers: 3614
Experience: Solicitors 2 years plus PQE
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