- Wed Jan 07, 2009 4:02 pm
I don't think this forum is really for those seeking to recover debt from someone but I'll respond as best I can.
I really hope that you've taken advice from a solicitor before doing this (preferably one that understands bankruptcy).
Bankruptcy is a class action.
That means that if you are successful in making someone bankrupt you simply put yourself alongside all the other unsecured creditors to get paid from the assets realised in the bankrutpcy after costs (which won't be small).
You are not treated as a super creditor and get money ahead of everyone else. It's a collective process.
If he has lots of other debts then you could just get a small piece of the action eg you say he has enough equity to pay you, but what if he owes £350,000 to others.
I think most solicitors would suggest that bankruptcy is a last recourse particularly if there are clear assets to attack - certainly I doubt any would say it's a route for debt collection, and the courts take a dim view of it being used as such or as a lever for payment.
The judge has rightly said that a statutory demand is the first step in the insolvency/bankrutpcy process. that doesn't mean he's suggesting that you should do that (at least I hope not).
If there is clear equity in the property you could try to attack that as an individual creditor (eg by a charging order?) at least you'd get some security that way.
I STRONGLY suggest you take some advice as to the implications of what you are doing - your post reads as if you haven't or don't know.
Yes he could decide to pay you rather than be made bankrupt, but you need to consider what will happen if he doesn't and is made bankrupt. you might (I stress might) be putting yourself in a worse position.
It might turn out OK, but there are risks involved. certainly if he's made bankrupt don't expect your money for a long time, not least because a trustee can't enforce a sale for 12 months anyway.
Remember, posts here are just the informed views of people with similar experiences to your own or with some basic understanding of the issues.
If it's important, then there's no substitute - seek professional advice!