Debt Recovery: Someone is threatening to bankrupt me, what should I do?January 1st 2021
First – do you admit owing the money? If not, then get in touch because where there is a “genuine dispute” as to a debt, a creditor cannot make someone bankrupt (or liquidate a company). However, if you receive any formal documents then there are very strict time limits for responding so don’t delay.
If you admit owing the money you may need financial advice as opposed to legal advice. It may be possible to negotiate payment terms, but your financial position may generally need reviewing because if you are genuinely “insolvent” the best thing may well be to restructure your debts as a whole.
For more FAQs see here