How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask Joshua Your Own Question

Joshua
Joshua, Lawyer
Category: Law
Satisfied Customers: 25358
Experience:  LL.B (Hons), Higher Prof. Dip. Law & Practice
35043042
Type Your Law Question Here...
Joshua is online now

Hi I have received a petition for compulsory liquidation

Resolved Question:

Hi
I have received a petition for compulsory liquidation for my company. When I first received a copy of the statutory demand I contacted the solicitors, who advised me to put forward an offer by email. I did this and received no reply. This week the petition arrived. I contacted the solicitors again on Tuesday who assured me that they had replied to my email and that he would forward me a copy of this and further info regarding going forward. This I didn't receive so contacted them again today. I was forwarded a letter listing fees, but not original debt. I'm confused I do not know what I need to do? I called them back, I was spoken to by an extremely rude man, who spoke to me like a child, he said he has 48 years experience, for me to listen to him, not interrupt. He honestly reduced me to tears. He suggested I go away and rethink an amount and get back to him, I don't know what to do, please help?
Submitted: 3 years ago.
Category: Law
Expert:  Joshua replied 3 years ago.

Joshua :

Hello and thank you for your question. I will be very pleased to assist you. I'm a practicing lawyer in England with over 10 years experience.

Joshua :

May I clarify please have you just received a statutory demand to date or have you now also received as well as a stat demand a petition for winding up from the court?

Customer: Hi
Customer: iHi have received a stat demand on and a petition
Joshua :

Thanks. When was the statutory demand received and when was he petition received please?

Customer: The stat demand was received on the 31 jan and the petition stamped by court 14 march
Joshua :

Thank you. Do you accept that you owe the debt claimed please? How much is the debt for?

Customer: Yes we accept the debt which is for £7530.61
Joshua :

Thank you. Are you able to repay the debt and if so over what period please?

Customer: In our email after stat demand we offered £500 per month until debt was paid.
Joshua :

Thanks. In a worst case scenario could you afford to pay off the entire debt now or is this impossible?

Customer: Sadly That would be impossible
Joshua :

No problem. Is £500 genuinely as much as the company can afford? Is this creditor the major creditor of the company or are there others?

Customer: Possibly we could stretch to £1000. We have other creditors. They have rejected £500 in the email I have never received. On the grounds 'proposals for settlement are totally unacceptable in view of the period of time required'
Joshua :

Thank you. Finally roughly what percentage does the above debt form of your overall company debts to creditors?

Customer: I'm guessing 20%
Joshua :

Thanks. There are a number of options available to you on the above facts. There is of course nothing eventing you from continuing to negotiate with the creditor increasing your offers of repayment terms in the hope that a higher offer will be accepted. At the same time, you can also consider requesting that the court consider an adjournment of the petition on the grounds that you were able to repay the debt in a reasonable period of time you can include evidence to support your claim to be able to do so. a court will consider an adjournment if it can be shown at the company is on the balance of probability likely to be able to repay the debt within a reasonable period of time

Joshua :

alternatively, if the company is presently having cash flow issues, you could consider a company voluntary arrangement through insolvency practitioner which is an arrangement with the company's creditors which fixes repayment in respect of all of those creditors and protect the company from insolvency action during that time. If you wish to explore this, you would need to contact a local insolvency practitioner that operates and offers company voluntary arrangements

Joshua :

finally, though this is unlikely to be terribly attractive accept in a last case scenario, you could ask the court to consider an administration order instead of a winding up order which transfers control of the company ideally on a temporary basis to the administrator who will attempt to put the company back on solid footing

Customer: This the conversation I just had with the solicitor, who went on to say they are not interested they want their money. He hears hundreds of these conversations every day, etc. I now have a copy of the missing email, which stated they want 2 payments a cheq straight away and another post dated 28 march. When I said £1000 he told me it was not enough and that I need to take it very seriously and To get a credit card to pay it! I do not know what is a reasonable amount or time?
Customer: If I apply for adjournment again what are the details which are reasonable? Amount and time? Can i do this myself or do I need to pay someone? Also are a court going to be open to this, whippp
Customer: whoops! If we go with an adjournment and do not get it, I'm presuming its bankruptcy ?
Joshua :

A court will be open to an adjournment where you can demonstrate a genuine ability and intention to repay in a reasonable time. There is no definition of what is reasonable and it is up to a judge but usually payment terms of anything between 2-4 months will be considered with time periods beyond that becoming increasingly challenging to be accepted.

Joshua :

You can write to the court to request an adjournment based on an offer of repayment yourself or alternatively you could seek the assistance of an agency that specialises in managing company debts or a solicitor to assist you.

Joshua :

If you google "company debt specialist" you will find many such agencies that offer such services

Customer: If I write to the court will I receive an answer prior to the hearing on 28 April? If accepted does it not go to court? And I presume this is still advertised?
Joshua :

Yes the request for an adjournment application will be placed before a judge for consideration. in the meantime, consider making payments to the creditor or at least offering such payments by writing cheques and so on in order to show good faith and in an effort to reduce the amount of debt owing before any eventual court hearing. An adjournment if granted is still advertised but obviously if granted, gives you more time to pay and therefore is advantageous

Joshua :

is there anything above I can clarify you?

Customer: Thanks and yes please? How to put together a letter requesting adjournment?
Joshua :

initially, you would write to the court setting out the office you have made for repayment and the maximum offer you are able to make in terms of repayment and how often such repayments can be made and on what date each month. you can advise that you can provide financial evidence to support your proposed repayment schedule and request that in light of your offer, a judge considers an adjournment of the petition and make a repayment order.

Customer: Do I explain to the solicitors that I am applying for this and then offer to pay to reduce?
Joshua :

You can continue to negotiate with the solicitors. You do not need to tell them of your adjourment application until you make it.

Customer: So just call them and offer to reduce tomorrow then write the adjournment request? Are they going to belittle me like today and refuse any payment? If I propose over 4 months, do you think it will be accepted?
Joshua :

If you prefer not to speak to them you can consider email or fax/letter. Consider enclosing payment with a letter as a first installment. Money in the hand can often have a persuasive effect. Otherwise your proposal appears sound.

Customer: Thanks, XXXXX XXXXX solicitor be able to speak to me in that manner? And tell me to get a credit card?
Joshua :

A solicitor has a duty towards unrepresented parties not to take advantage of them. because it was a verbal conversation rather than a written exchange of correspondence, it will be a matter of your word against his as my suspicion will be that his recollection of the conversation will be conveniently different to your own way you to make a formal complaint however you can make a complaint with regards XXXXX XXXXX solicitors conduct consider it reaches the above obligation to the solicitors regulation authority they might be at this stage would be that would be an unnecessary distraction to your primary aim of managing the insolvency application

Joshua :

Does the above answer all your questions or is there anything I can clarify or help with any further?

Customer: No, that's great, thanks
Joshua :

I was very best of success in your negotiations.

Joshua :

If you have no further questions for now I should be very grateful if you would kindly take a moment to rate my service to you today. Your feedback is important to me. If there is anything else I can help with though please reply back to me though.

Joshua, Lawyer
Category: Law
Satisfied Customers: 25358
Experience: LL.B (Hons), Higher Prof. Dip. Law & Practice
Joshua and 2 other Law Specialists are ready to help you

What Customers are Saying:

 
 
 
  • Thank you so much for your help. Your answers were really useful and came back so quickly. Great! Maggie
< Previous | Next >
  • Thank you so much for your help. Your answers were really useful and came back so quickly. Great! Maggie
  • A quick response, a succinct and helpful answer in simple English. I believe I can now confront the counter party with confidence -- worth the 30 bucks! Rick
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C.
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex
  • Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult. GP
  • I couldn't be more satisfied! This is the site I will always come to when I need a second opinion. Justin
  • Just let me say that this encounter has been entirely professional and most helpful. I liked that I could ask additional questions and get answered in a very short turn around. Esther
 
 
 

Meet The Experts:

 
 
 
  • Jo C.

    Jo C.

    Barrister

    Satisfied Customers:

    30316
    Over 5 years in practice
< Previous | Next >
  • http://ww2.justanswer.com/uploads/EM/emus/2015-7-7_192327_bigstockportraitofconfidentfemale.64x64.jpg Jo C.'s Avatar

    Jo C.

    Barrister

    Satisfied Customers:

    30316
    Over 5 years in practice
  • http://ww2.justanswer.com/uploads/BE/benjones/2015-12-1_0437_ennew.64x64.jpg Ben Jones's Avatar

    Ben Jones

    UK Lawyer

    Satisfied Customers:

    11553
    Qualified Solicitor - Please start your question with 'For Ben Jones'
  • http://ww2.justanswer.com/uploads/BU/Buachaill/2012-5-25_211156_barrister5.64x64.jpg Buachaill's Avatar

    Buachaill

    Barrister

    Satisfied Customers:

    1754
    Barrister 17 years experience
  • http://ww2.justanswer.com/uploads/JO/jojobi/2013-3-19_0265_maxlowryphoto.64x64.jpg Max Lowry's Avatar

    Max Lowry

    Advocate

    Satisfied Customers:

    894
    LLB, 10 years post qualification experience
  • http://ww2.justanswer.com/uploads/UK/UKLawyer/2012-4-12_9849_F2.64x64.jpg UK_Lawyer's Avatar

    UK_Lawyer

    Solicitor

    Satisfied Customers:

    750
    I am a qualified solicitor and an expert in UK law.
  • http://ww2.justanswer.com/uploads/KA/Kasare/kasare.64x64.jpg Kasare's Avatar

    Kasare

    Solicitor

    Satisfied Customers:

    402
    Solicitor, 10 yrs plus experience in civil litigation, employment and family law
  • http://ww2.justanswer.com/uploads/OS/osh/2015-7-7_19268_gettyimagesb.64x64.jpg Joshua's Avatar

    Joshua

    Lawyer

    Satisfied Customers:

    8199
    LL.B (Hons), Higher Prof. Dip. Law & Practice