This fact sheet outlines how your business can manage a dispute.<\/p>\n <\/div>\n \n\nDownload Now<\/a> <\/section>\n <\/div>\n\n\n\n\n\n\n Continue reading this article below the form\n <\/i>\n<\/a>\n
However, a debtor may not pay within 21 days, without applying to set aside the debt or stop you from serving a winding-up petition. A court will usually take this to mean they cannot<\/em> pay their debts. At this point, you can start bankruptcy proceedings or use a winding-up petition. <\/p>\n\n\n\n This is one way in which a statutory demand is effective, because it helps you start the process of demanding your money back.\u00a0<\/p>\n\n\n\n Bankruptcy proceedings are a formal insolvency procedure<\/a>. They begin with a bankruptcy order against an individual. In a bankruptcy process, the debtor\u2019s assets will be seized and divided among all of the creditors. If there are multiple creditors or the debtor has minimal or no assets, you may not recover all of your money. This is because the money will be divided among the creditors.<\/p>\n\n\n\n Further, some creditors may have priority over others. As a result, you should communicate with your debtor to try to understand their financial situation if you are looking to initiate a bankruptcy proceeding through your statutory demand.<\/p>\n\n\n\n A winding-up petition, sometimes known as ‘liquidation’<\/a>, is also a formal insolvency procedure similar to bankruptcy proceedings. The key difference is that a winding-up petition is used against a company as opposed to an individual. In this case, the company’s assets will also be taken and distributed amongst its creditors. <\/p>\n\n\n What are Bankruptcy Proceedings and Winding-Up Petitions?<\/h2>\n\n\n\n
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\n How to Manage a Business Dispute<\/div>\n \n