Creditors Petition

 

A creditor's petition is a petition made to the court by a creditor, when a debtor owes him £750 or more. The amount owing must be a liquidated sum which is unsecured against any of the debtor's property. For the creditor's petition to be successful, the creditor must be able to claim that the debtor is unable to pay the debt, or has little prospect of being able to pay it. The creditor will usually be able to show that the debtor cannot pay his debt, by producing evidence that either the debtor has failed to pay a 'statutory demand' (a demand for payment formally served on the debtor by the creditor), or that the creditor has secured a 'judgement debt' (an order by a court to pay money) against the debtor. A Personal Insolvency Solicitor can assist with presenting a creditor's petition to the court.

Any creditor who is owed less than £750 cannot present a petition on their own, but can join together with other creditors to present a petition, provided the total amount of debt exceeds £750. The petition should be presented to either the High Court, if the debtor lives or carries on business in London, or a County Court with bankruptcy jurisdiction in the area that the debtor resides or carries on business.

If you would like to obtain legal advice on presenting a creditor's petition or advice about a creditor's petition in general, Caven can put you in touch with a local specialist personal insolvency solicitor free of charge. So, if you have any questions or would like our help in finding local personal insolvency solicitors please call us on 08001 221 2299 or complete the web form above.

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