I have an outstanding debt younger than six years for services rendered, with a letter signed by the person owing the money (in 2010) that the debt is valid and that he (personally) owes the money.Can I threaten (and pursue, if necessary) bankruptcy against this person if they do not pay the debt owing?The debt was originally 250,000 + VAT and the LETTER IN 2010 STATES 150,000 + VAT
I have been to solicitor and barrister is preparing opinion right now.
1. yes you can pursue this debt by means of bankruptcy petition. However, you are better off get judgment on the debt before the six years runs out. This is because once you have got judgment, then the judgment is valid for 12 years from the date of judgment. The potential pitfall of simply issuing bankruptcy proceedings is that if your petition is not immediately granted, then your debt may become statute barred at the end of six years. Additionally, if you have judgment, you can seek to execute it against any assets the debtor owes. Bankruptcy would potentially mean that all creditor share the assets of the debtor equally among them. What you want is to get to the debtors assets first and get paid in full, not merely get a dividend in a bankruptcy.
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