It is possible to begin liquidation or winding up court proceedings based on what is often called a short form demand letter.
A valid short form demand letter must generally be based on a debtor (say a main contractor or commercial customer) admitting that they have a duty to pay sums sought but that they cannot pay those sums on time or in full. Serving such a demand can cost about £100 and very often prompts payment, failing which asking the court to appoint a liquidator to that company can be a cost-effective way of recovering what creditors are owed. Under normal circumstances the appointment of a liquidator can be achieved within a fairly short time of the application being made to the Court.
Short Form Demand
Understanding Short Form Demand
Discover the essentials of initiating liquidation or winding-up proceedings with a short form demand letter. This video explains how a properly executed demand can lead to prompt payment or set the stage for appointing a liquidator, providing an efficient path to recover owed sums.
