Creditor Pressure and Legal Action

There has been an increase in creditor pressure from the Banks and supplers as the recession continues but HMRC in particular is now flexing its muscles.

HM Revenue and Customs has confirmed it will use debt collection agencies over the next year to chase firms. Focusing on lower value debts, they are Commercial Collection Services Ltd, Credit Solutions Ltd, Fairfax Solicitors Ltd and iQor Recovery Services Ltd, according to the HMRC notice ‘Modernising debt collection.’

As Bad Debts become greater creditors will inevitably get tougher with their debt collection.

If a creditor has obtained a County Court Judgment, this may demonstrate the company’s insolvency and the creditor may petition to wind up the company.

If a creditor has obtained a statutory demand for greater than £750 and it remains unpaid for more than 21 days, then the creditor may petition to wind up the company.

If you are struggling under the burden talk to Emerald today.