If you suspect that a limited company in Scotland is falsely claiming bankruptcy to evade a £700 debt owed to you, you have several options to consider:
Verify the Bankruptcy Claim: Start by checking the company’s financial status. You can do this by accessing records from Companies House to see if an official insolvency procedure, like liquidation or administration, has been initiated. This can help validate or disprove their bankruptcy claim.
Communicate with the Company: Attempt to resolve the issue directly with the company. Request documentation or proof of their bankruptcy status. Open, documented communication can sometimes lead to resolution without escalating matters legally.
Issue a Written Demand: If direct communication doesn’t work, send a formal written demand for payment. This document should outline the debt and request payment within a specified timeframe. It serves as a record of your effort to collect the debt.
Engage a Solicitor: If the debt remains unpaid and you continue to believe the bankruptcy claim is false, consider consulting with a solicitor experienced in debt recovery. They can provide legal advice specific to your situation, help assess whether the company is being truthful, and guide you on potential next steps.
Consider Court Action: If all else fails, you may decide to take legal action. For debts up to £5,000 in Scotland, you can use the simple procedure through the sheriff court. This involves filing a claim, and if successful, the court can order the company to pay you.
Explore Mediation: Legal proceedings can be time-consuming and costly, so consider mediation as an alternative. This can often encourage both parties to reach a mutually agreeable solution with the help of a neutral third-party mediator.
Understand the Risks: Legal action does not guarantee recovery of the full amount, especially if the company is genuinely insolvent. Assess the likelihood of getting paid against the costs and effort involved.
Each of these steps should be considered carefully, and a balanced approach between informal resolution and formal legal action should be adopted based on the evidence you have regarding the company’s financial standing.