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Carolynn

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Dealing with Angry Creditors

Creditor Pressure

Pressure

Explanation

Threat of legal action from creditors

This step is usually a last resort for creditors to pursue and is only taken if they are still awaiting their payments.Businesses will have had some warning of this action via telephone conversations or by formal letters requesting payments are made.

 

A Statutory Demand letter will be the first step to the legal action. If you have received this letter already you have 21 days to pay the creditor in full or further legal action will be taken.

 

The end result in this is the company will be forced in Compulsory Liquidation by the court.

 

Being placed on stop by a supplier

This step can be taken by suppliers who have been waiting longer than expected to be paid.This can be a domino effect as without the supplies, you could have no stock, which means no customers, and no money.

 

You may be waiting for a payment yourself before you pay your suppliers which are why prominent payments made by both parties are essential to positive continued trading.

Bailiff action being taken

If you are struggling to keep up with debt repayments or have failed to pay debts you owe then bailiff action may be threatened.A bailiff has legal power to collect certain debts either by requesting the payment in cash or by taking and selling belongings to raise the money.

 

This action is generally only taken if creditors have tried other ways to get their debt paid.

If you receive notice from a bailiff, do not ignore it. There are options to stop bailiff action if the notice is acted upon quickly.

 

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