Who has to pay council tax

Bankruptcy and liquidation

First, we will send you a statutory demand, which will give you 21 days to pay us the full amount.

If you do not settle the statutory demand, we will present a petition for bankruptcy or liquidation in the high court. If we issue a bankruptcy order against you, this will mean:

  • the official receiver will investigate your affairs
  • your bank accounts will be frozen
  • you will lose your credit rating and be blacklisted from getting any more credit and
  • you could be forced to sell your home to pay your debts

If you are made bankrupt, the official receiver will control your spending for three years.

If a liquidation order is granted against your company, this will mean;

  • you will not be allowed to be a company director
  • your company will be wound up by the official receiver
  • your personal bank accounts could be frozen and
  • you could be forced to sell your home

Do not ignore the statutory demand.