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JGM
JGM, Solicitor
Category: Law
Satisfied Customers: 11439
Experience:  30 years as a practising solicitor.
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I've a client (a Limited company) who have just 'gone bust'.

Customer Question

I've a client (a Limited company) who have just 'gone bust'. They are owe us about 3k for services rendered and have said they can't afford a liquidator. What should I do next?
Surely they can't just close the door like that and they must officially wind up the company and allow creditors like ourselves the opportunity to maximise our chance of getting some of our money?
Submitted: 1 year ago.
Category: Law
Expert:  JGM replied 1 year ago.

The company cannot trade whilst insolvent but at the same time they are under no obligation to appoint a liquidator. You as a creditor can do so by serving a demand for payment and then lodging a petition for liquidation, assuming there are sufficient realisable assets to cover the cost of the petition and the liquidator's costs. Happy to discuss further. I hope that helps. Please leave a positive rating so that I am credited for my time.

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Customer: replied 1 year ago.
OK, how do I do that and how much will it cost? Can I send issue a claim through a Small Claims form or perhaps threaten to do so?
Expert:  JGM replied 1 year ago.

You can raise a small claim action or you can issue a demand letter followed by a liquidation petition. In both cases you should be as certain as you can that there are assets in the company otherwise you will be throwing good money after bad. You can raise a small claim yourself and the forms are on the Scottish Courts website at www.scotcourts.gov.uk. A liquidation petition would need the assistance of your solicitor.