If you’re considering serving a bankruptcy petition against someone who owes you money, it’s important to follow the correct legal process.
You could make that argument with many legal documents that you may serve on someone, but with bankruptcy in particular the conditions are stringent, and the potential impact severe. A bankruptcy petition is not something to take lightly – and so it shouldn’t be treated as such when you look to serve it.
Serving the petition properly can help avoid delays or complications, ensuring you have the best chance of getting the outcome you want. Which is why it makes sense to use a trusted process server.
Whether you’re already looking for process servers in Warrington, Cheshire because you’re about to serve a bankruptcy petition, or you’re exploring your options to chase up a debtor, here’s a look at everything you need to know about serving bankruptcy petitions so that you’re prepared for every step.
Make Sure the Conditions Are Met
Before you even think about serving a bankruptcy petition, a few conditions need to be satisfied:
- The debtor must owe at least £5,000 in unsecured debt.
- They must have ignored a statutory demand for payment or failed to set it aside.
- There should be no active application for an Individual Voluntary Arrangement (IVA).
If these conditions aren’t met, you won’t be able to proceed with the petition. It’s always a good idea to double-check everything before taking the next steps, because otherwise you might end up wasting more money on a futile process.
Prepare and File the Petition
Once you’re sure the conditions are met, you can go ahead and prepare the bankruptcy petition. This includes filling out the right forms and making sure everything is correct. You’ll need:
- The bankruptcy petition forms, which you can get from the government’s website.
- A Statement of Truth, verifying that all the information is accurate.
- Payment of the court fee (£332) and Official Receiver’s deposit (£1,500).
Those fees are significant, which again reiterates how seriously you should be taking this process. For many people it’s not worth looking to secure a bankruptcy petition against someone. However, it may become your last resort.
File the completed petition at the correct court. It’s important to check that no other petitions are already in progress against the debtor too, because you can’t file a secondary one.
Serve the Petition on the Debtor
Now comes the crucial part – serving the bankruptcy petition. The debtor needs to be personally served at least 14 days before the hearing. This is usually done by delivering the petition directly to them at their home or place of work.
If you can’t serve the debtor personally because they’re avoiding you, you can apply to the court for substituted service. This might involve posting the petition through their letterbox or leaving it at their address.
In extreme cases, you may even be able to serve them by publishing an advertisement. Just make sure you’ve made reasonable attempts to serve them in person first.
It’s crucial that you get this right, which is why you should be seeking the help of a professional to assist with service. Process servers who have knowledge of the bankruptcy process, and experience in serving people in a timely manner, can be extremely helpful here.
File a Certificate of Service
After you’ve served the petition, you need to file a Certificate of Service with the court. This proves the debtor has been properly served and needs to be done within 5 business days before the court hearing. Make sure to include the date and time of service.
This is necessary for the court to be able to proceed, and so must be recorded correctly.
Get Ready for the Hearing
The court will set a hearing date once the petition is filed. At this hearing, the court will decide whether to make a bankruptcy order. If the debtor wants to contest the petition, they’ll need to notify the court at least 7 days before the hearing.
Things to Keep in Mind
Issuing a bankruptcy petition can have serious consequences for the debtor. Their bank accounts might be frozen, and they could lose access to important assets. While this can help push the debtor to pay, it can also make repayment harder.
So, make sure you’re prepared for the consequences of your actions if you do go down this route, and that you fully understand the necessary steps involved and the fees you’ll have to pay.
Why Use a Process Server for Bankruptcy Petitions
Hopefully it’s clear from this article how important it is to be on it with the legalities of serving a bankruptcy petition. You can’t muddle your way through this – everything needs to be done properly, and recorded as needed.
With the high fees and significant consequences involved, it’s best to therefore pay a little extra to use a process server who knows what they’re doing, and will make sure everything is carried out correctly.
And a private investigator with process serving experience is often your absolute best bet. They can not only follow the regulations, but they’re able to use their skills to track down evasive debtors, to serve the petition in the most timely manner possible.
If you want to make sure that your bankruptcy petition is served quickly and correctly, then a private investigator can help you achieve this. And where personal service remains impossible, they’re still able to carry out substituted service on your behalf.
If you’re looking for process serving in other areas of Cheshire such as Crewe, or looking for someone to help you serve someone with a bankruptcy petition, or need help serving any other type of legal document, our team is available to help.
We work in the north west of England primarily, but can help anywhere across the country and even beyond the borders. Give EJM Investigations a call on 01772 334700 to find out more.