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.
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?
Thanks. When was the statutory demand received and when was he petition received please?
Thank you. Do you accept that you owe the debt claimed please? How much is the debt for?
Thank you. Are you able to repay the debt and if so over what period please?
Thanks. In a worst case scenario could you afford to pay off the entire debt now or is this impossible?
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?
Thank you. Finally roughly what percentage does the above debt form of your overall company debts to creditors?
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
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
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
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.
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.
If you google "company debt specialist" you will find many such agencies that offer such services
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
is there anything above I can clarify you?
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.
You can continue to negotiate with the solicitors. You do not need to tell them of your adjourment application until you make it.
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.
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
Does the above answer all your questions or is there anything I can clarify or help with any further?
I was very best of success in your negotiations.
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