We helped a repeat client recover a £65,000 debt, together with £13,000 in late payment interest, £1,700 in late payment compensation and the legal costs of the winding-up petition proceedings.
Why the client needed our help
Our client was owed a significant debt of £65,000 by a company that had failed to pay.
We initially prepared a draft winding-up petition, but the debtor did not respond. Our client therefore instructed us to issue a full winding-up petition at court to recover the outstanding debt and the additional sums due.
Other creditors had also begun making enquiries, so it was important to manage the proceedings carefully and secure payment for our client.
How we helped
After the debtor failed to respond to the draft petition, we prepared and issued the winding-up petition at court.
The issue of the petition prompted the debtor to engage. We conducted settlement negotiations over approximately one week, seeking recovery of the principal debt as well as the interest, compensation and legal costs incurred by our client.
Once an agreement had been reached and payment secured, we arranged for the winding-up petition to be dismissed.
The outcome
Our client recovered
- the £65,000 principal debt,
- £13,000 in late payment interest,
- £1,700 in late payment compensation; and
- legal costs in full.
The client therefore recovered £79,700 in debt, interest and compensation and costs in less than a week.
It also meant that the client recovered the debt at no cost to itself as all legal costs were paid by the debtor.
The petition was then dismissed and the settlement funds were safeguarded, bringing the winding up petition proceedings to a successful conclusion.
